Assidnment 9

© 2015 Laureate Education, Inc. Page 1 of 1 Healthcare Financial Management and Economics Week 9 Assignment — Budgeting and Variance Analysis Instructions: The following are budgeted an d actual revenues and expenses for a hospital. Budgeted Actual Revenues Surgical Volume 2,3 00 2, 600 Gift Shop Revenues $1 8,000 $19 ,000 Surgery Revenues $589 ,500 $85 2,750 Parking Revenues $1 7,000 $1 9,000 Expenses Patients Days 26,000 25,000 Pharmacy $1 19 ,000 $1 58 ,000 Misc Supplies $6 8,000 $795,600 Fixed Overhead Costs $8 32 ,000 $890 ,000 Using an Excel spreadsheet to show your calculations: 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? 3. Determine the service -related variance for Surgical Volume . 4. Determine the service -related variance for Patient Days . 5. Prepare a flexible budget estimate. Present a side -by -side budget, flexible budget estimate, and the actual Surgical R evenues . 6. Prepare a flexible budget estimate. Present a side -by -side budget, flexible budget estimate, and the actual Patient Expenses . 7. Determine what variances are due to change in volume and what varia nces are due to change in rates.