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Price, Quantity, and Volume Variances
Your operating room (OR) expects to have an unusually high number of operations for kidney transplants this year. You decide to hire extra part-time nurses to help out. You plan to pay $18,750 for these nurses. You expect to pay these nurses for 750 hours, and you are expecting 150 operations. You actually paid an average of $27 per hour for 680 hours. There actually were 135 operations.
Problem 1: Calculate the price, quantity, and volume variances. Indicate whether each is favorable or unfavorable.
Problem 3: Explain whether you think the variances are good or bad for the OR.
s. a. harrington company is a u.s.-based company that prepares its consoli- dated financial statements in accordance
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