Detailed variance analysis. The student clinic at Schumpeter University is run as a profit center. The dean of student services was reviewing the expenses on last month’s financial report for the...

Detailed variance analysis. The student clinic at Schumpeter University is run as a profit center. The dean of student services was reviewing the expenses on last month’s financial report for the clinic, which also treated nonstudents on a fee-for-service basis. During the month the building’s furnace needed to be replaced, and the nonstudent department of the clinic was charged $400 for its share in addition to its normal fixed overhead assessment, which was usually $800. The dean was concerned because actual departmental expenses exceeded budget, but then noticed that 250 nonstudent patients had been treated, compared to a budget estimate of 150. And costs to serve the patients per unit were 10 percent below the $85.00 budgeted.

a. How much was the total expense variance? Was it favorable or unfavorable?

b. What was the variance for the variable costs? Was it favorable or unfavorable?

c. What was the flexible budget estimate?

d. What was the volume variance for the patient costs? The cost variance for patient costs?