1. In the illustrated example of variance analysis for an infusion center, the flexible variance analysis is divided into a “flexible budget variance” of $11,200 (unfavorable) and a “sales volume variance” of $12,000 (favorable). Which of these variances relates to the number of procedures performed?
A. Flexible budget variance
B. Static budget variance
C. Sales volume variance
D. None of these is correct.
2. Referring once again to the infusion center variance analysis example, note that the “flexible budget variance” is $11,200 (unfavorable), the “sales volume variance” is $12,000 (favorable), the “static planning budget” is $20,000, and the “actual amounts at actual prices” is $20,800. With what you have learned about variance analysis, what is the proof total amount for this analysis?
A. $8,800
B. $8,000
C. $800
D. None of these is correct.