# Variance Problems: Total Cost Incurred by Organizations (Math Problem Sample)

Variance Problems:

1. Last year the price for thermometer covers in a pediatrician’s office was $.05 each. This year, the covers cost $.06 each. If the office purchased 10,000 thermometer covers this year, what is the price variance? Is it favorable or unfavorable?

Price variance = (Present price – Old price) × Present quantity = _____________________ F or U ?

2. Management has studied work patterns in the housekeeping department and estimates the number of hours to be worked as follows. Hours worked = (1,500 hours per month) + (0.50 × RVUs). For the coming month, management expects RVUs to be 5,800. What should budgeted labor for the month be?

Flexible Budget = Hours worked + (0.5 X RVUs) = ________________ Hours

3. Efficiency cost is a term that involves:

A. The amount of time that a problem goes uncorrected

B. Cost per unit of time

C. Probability the problem occurrence is correctable

D. All of the above.

Variance Problems

Name

Course

Instructor

Date

1] Last year the price for thermometer covers in a pediatrician’s office was $.05 each. This year, the covers cost $.06 each. If the office purchased 10,000 thermometer covers this year, what is the price variance? Is it favorable or unfavorable?

Price variance = (Present price – Old price) × Present quantity = _ (0.06-0.05)*10,000= 100______U______________ F or U?This is an unfavorable variance since the pediatrician’s office had initially budgeted using the old price of $.05 that then increased by $.01.

2] Management has studied work patterns in the housekeeping department and estimates the number...

### Other Topics:

- Basic Statistics Module 2 CaseDescription: Therefore, measure of central tendency is a single value that describes a given set of data by sorting out the central position within that set of data...10 pages/≈2750 words | No Sources | APA | Mathematics & Economics | Math Problem |
- Sampling, Hypothesis Testing, and RegressionDescription: Choose one design method from the list below. Using your example, make a list of 2 or 3 advantages and 2 or 3 disadvantages for using the method. ...15 pages/≈4125 words | 3 Sources | APA | Mathematics & Economics | Math Problem |
- Realistic, Achievable, Measurable GoalDescription: What do you think about this goal; Increase sales from $15,000 to $22,000 by December 1st at a cost not to exceed $3,000...1 page/≈275 words | 1 Source | APA | Mathematics & Economics | Math Problem |