Rushton Hospital Bases Its Budgets on Patient-Visits

question 39

Multiple Choice

Rushton Hospital bases its budgets on patient-visits. The hospital's static planning budget for May appears below: Actual results for the month were:
-The spending variance for supplies costs in the flexible budget performance report for the month is:

• A)$3,030 F
• B)$2,520 U
• C)$3,030 U
• D)$2,520 F

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Definitions:

Acceptance Sampling

A method of measuring random samples of lots or batches of products against predetermined standards.

Assignable Variation

Variation in a production process that can be traced to specific causes.

Operating Characteristics

These refer to the performance metrics and behavior of a system under specified conditions.