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Posted: August 17th, 2024
What is the amount of variance that is attributed
Question description
What is the amount of variance that is attributed to the difference between the budgeted and actual wage rate per hour?Use the following data to calculate the variances.The following information has been prepared for a home health agency.BudgetActualWage Rate per Hour$16.00$17.00Fixed Hours320320Variable Hours per RelativeValue Unit (RVU)1.01.1Relative Value Units (RVUs)1,0001,200Total Labor Hours1,3201,640Labor Costs$21,120$27,880Cost per RVU$21.12$23.23Budgeted costs at actual volume would be $25,344 ($21.12 × 1,200), and the total variance to be explained is $2,536 Unfavorable ($27,880 - $25,344). Be sure to specify whether the variance is favorable or unfavorable. (Points : 5)
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