# 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:

- Module 2 Assignment: Background Measures of Central TendencyDescription: A measure of central tendency is considered to be a value that provides a description of a given set of data by showing a central position in the given data...10 pages/≈2750 words | 3 Sources | APA | Mathematics & Economics | Math Problem |
- Classification Of Optimal Control Problems PDE Description: Let Ω ⊂ R 3 with smooth boundary Γ = ∂Ω, λ ≥ 0, T > 0 and y Ω, u a, u b, α,f be given functions....3 pages/≈825 words | No Sources | APA | Mathematics & Economics | Math Problem |
- Introduction to ProbabilityDescription: Problems need to include all required steps and answers for full credit. All answers need to be reduced to lowest terms where possible....10 pages/≈2750 words | No Sources | APA | Mathematics & Economics | Math Problem |