Section TwoVariance Analysis Variance Analysis Case Study During the month of February, an outpatient surgery clinic has incurred a significant...

Total Payroll Costs

(Table adapted from: Rundio, A. (2016). The nurse manager's guide to budgeting and finance, 2nd. Ed, Indianapolis, IN: Sigma Theta Tau International)

1.   Complete the monthly personnel report for the surgical unit.

2.   Calculate each of the following. Include the formulas used with reference.

a.   Volume (efficiency) variance:

b.   Quantity (volume) variance:

c.   Cost (price) variance:

3.   What is the total variance in personnel budget for this month?

4.   Analyze all the factors that made the differences and why the variances occurred. How can this variance be justified?

5.   In what ways might these variances inform the current or future budgets?