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How are the variances related? udgets of Brandon Surgery Center for the most recent historical...

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Accounting

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How are the variances related? udgets of Brandon Surgery Center for the most recent historical Following are the budgets of Bra arter (in thousands of dollars): Actual Number of surgeries Patient revenue Salary expense Nonsalary expense Profit Simple 1,200 $2,400 $1,200 $ 600 $ 600 Flexible 1,300 $2,600 $1,300 $ 650 $ 650 1,300 $2,535 $1,365 $ 585 $585 The center assumes that all revenues and costs are variable and hence tied directly to patient volume. a. Explain how each amount in the flexible budget was calculated. (Hint: Exam- ine the simple budget to determine the relationship of each budget line to volume.) b. Determine the variances for each line of the P&L statement, both in dollar terms and in percentage terms. C. What do the results in part b tell Brandon's managers about the center's opera- tions for the quarter

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