Course Project: Nurse-at-Home—Part V

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Variances

Use the following information for Nurse-at-Home, and answer the questions.

Year: 2004 Static Budget Flexible Budget Actual Budget
Volume for the year 5945 visits 6000 visits 5889 visits
Revenues $535,000 $540,000 $530,000
Expenses $480,000 $480,000 $488,000
Profits $55,000 $60,000 $42,000

Calculate and interpret the profit variance.

Calculate and interpret the revenue variance.

Calculate and interpret the cost variance.

Calculate and interpret the volume and price variances on the revenue side.

Calculate and interpret the volume and management variances on the cost side.

Discuss your overall findings for the operations of Nurse-at-Home for 2004.

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