Calculate the variance analysis for the information provided below using this problem and the formula provided to you.

Data: Total payroll cost budgeted: $65,600, actual cost: $78,627.5, variance: $13,027.50

Total nursing hours: 1600, actual hours: 1850, variance: 250

Composite Hourly pay rate: $30, actual rate: $33, variance: $3

Patient Days: 350, actual days: 375, Variance: 25

Formulas to use in calculations:

Step #1: Compute the Efficiency Variance.

Budgeted nursing hours / Budgeted patient days = HPPD Budgeted

Actual nursing hours / Actual patient days = HPPD Actual

HPPD Actual - HPPD Budgeted

Actual patient days X extra nursing care hours = Total extra

Total extra X Budgeted hourly wage = Efficiency (in dollars)

Step #2: Compute the volume variance.

Actual patient days - Budgeted patient days = A

A X Budgeted HPPD = B

B X Budgeted pay = V (dollars)

Step #3: Compute the cost variance.

Actual $ paid - Budgeted $ paid = D

D X Actual hours worked = C (dollars)

Step #4: Calculate the Budget Variance.

Efficiency + Volume + Cost = Budget Variance