Week 4

Sheet1

	For the accounts below
1	Calculate the variance, making sure that negative numbers represent unfavorable numbers and positive numbers represent favorable numbers.
	Note - think carefully about Contractuals. As an organization do you want more money taken away or do you want to keep more money.
2	Calculate the percent of variance.
3	State whether this is a favorable (put a F in the cell) or an unfavorable (put a U in the cell) variance.
4	Given a 3% variance corridor put yes in column H if you need to provide a reason for the variance, put no in the cell if you don't.
5	If there is a yes in column H you need to describe what is the cause of the variance
	Account				Percent of	Favorable (F)
		Actual	Budget	Variance	Variance	Unfavorable (U)	Investigate?	Reason
Example
	Rent Expense	1,200	1,500	300	20.00%	Favorable (F)	Y	Lower rent contract became effective
Revenues
	Gross Revenue	3,155,890	3,045,768
	Contractuals	(759,321)	(776,537)
	Net Revenue	2,396,569	2,269,231
Expenses
	Payroll	1,374,938	1,483,984
	Supplies	775,092	720,942
	Insurance	9,200	9,000
	Utilities	12,945	11,000
	Contract Security	9,700	10,000
	Total Expenses	2,181,875	2,234,926
Net Income		214,694	34,305

Ferris Clinic Variance Ananlysis December 31, 2016

&D &F &A

Sheet2

Sheet3