Review the attachment in order to prepare an evaluation of the performance of the Radiology Department Manager for a hospital.
The service unit, or output, for this department, is the number of procedures performed. A static budget was prepared at the beginning of the year. Examine that budget in relation to actual experience.
The department manager is pleased because the department has a favorable $120,000 cost variance. Evaluate the effectiveness claims of the manager using the budgetary variance model. What is your analysis of the department manager’s performance? Explain your reasoning.