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Gumchara Corporation reported the following information with respect to the materials required to manufacture amalgam florostats during the current month:
Standard price per gram of materials -
Standard quantity of materials per amalgam florostat - 4 grams
Actual materials purchased and used in production - 2,800 grams
Actual amalgam florostats produced during the month - 520 units
Actual cost of materials purchased -
Normal monthly output - 550 units
c. Will Gumchara's overhead volume variance be favorable or unfavorable? Why?
Margo, age 35, was severely injured in an auto accident. She is covered under her employer’s preferred provider organization (PPO) plan. The plan has a $1000 calendar-year deductible, 80/20 percent coinsurance, and an annual out-of-pocket limit of$3000. As a result of the accident, Margo incurred the following medical expenses:
In addition, Margo could not work for one month and lost $4000 in earnings.
- a. Based on this information, how much will Margo collect for her injury if she receives medical care from health care providers who are part of the PPO network? (Assume that all charges shown are the allowable or approved charges by the insurer and all providers are in the PPO network.)
- b. Assume that Margo’s broken leg does not heal properly, and she needs another surgical operation. Margo would like a different surgeon with an outstanding professional reputation to perform the operation. The surgeon is not a member of the PPO network. Will Margo’s plan pay for the surgery? Explain your answer.