| Revenues | Expenses |
| Givens: | Budgeted | Actual | Givens: | Budgeted | Actual |
| [A] | Surgical volume | [A] | Patient days |
| [B] | Gift shop revenues | [B] | Pharmacy |
| [C] | Surgery revenues | [C] | Miscellaneous supplies |
| [D] | Parking revenues | [D] | Fixed overhead costs |
| 1. Determine the total variance between the planned and actual budgets for Surgical Volume. Is the variance favorable or unfavorable? | 2. Determine the total variance between the planned and actual budgets for Patient Days. Is the variance favorable or unfavorable? |
| Budgeted | Actual | Variance | Variance |
| [E] | Surgical volume [A] | [E] | Patient days [A] |
| [F] | Gift shop revenues [B] | [F] | Pharmacy [B] |
| [G] | Surgery revenues [C] | [G] | Miscellaneous supplies [C] |
| [H] | Parking revenues [D] | [H] | Fixed overhead costs [D] |
| [I] | Total variance [E] | [I] | Total variance |
| 3. Determine the service related variance for Surgical Volume. | 4. Determine the service related variance for Patient Days. |
| Variance | Variance |
| [J] | Total variance [I] | [J] | Total variance [I] |
| [K] | Gift shop revenue variance [F] | [K] | Amt. explained by fixed overhead [H] |
| [L] | Parking revenue variance [H] | [L] | Other fixed expenses |
| [M] | Service-related variance [J-K-L] | [M] | Service-related variance [J-K-L] |
| 5. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate, and the actual surgical revenues. | 6. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate, and the actual patient expenses. |
| Budgeted | Flexible | Actual | Budgeted | Flexible | Actual |
| [N] | Surgical volume [A] | [N] | Patient days [A] |
| [O] | Surgical revenue per unit [C / A] | [O] | Cost per patient day (Pharm + Misc) [B+C]/[A] |
| [P] | Surgical revenue [C] | [P] | Total cost (Pharm+Misc) [N x O] |
| 7. Determine what variances are due to change in volume and what variances are due to change in rates. |
| Budgeted | Flexible | Actual | Variance |
| [Q] | Budgeted surgical revenue [P] |
| [R] | Flexible surgical revenue [P] |
| [S] | Actual surgical revenue [P] |
| [T] | Volume variance [R - Q] |
| [U] | Rate variance [S - R] |
firstnurse
USW1_MMHA_6400_Week09_budgetAndVarianceTemplate1.xlsx
