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Help me with my Finance Assignment of Activity and Flexible Budget Variance


Question -
52. Activity and Flexible-Budget Variances
Several years ago, Methodist Hospital initiated its substance program, which focused on counseling current and potential substance abusers. The program was funded by a grant from the state department of health that paid $76 per visit for counseling. Pat Leizinger, CFO of Methodist Hospital, was concerned about the substance abuse program. It had never broken even and, thus, was subsidized by the other patients in the hospital. Mr. Leizinger was preparing the hospital’s budget for 20X8, and he did not like the substance abuse program’s financial situation. The results for 20X7 are show below:
Revenues ($76 per visit; 17,000 visits)$1,292,000
Cost of services:
Supplies ...Read More

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