During the month of February, an outpatient surgery clinic has incurred a significant unfavorable variance. The...

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During the month of February, an outpatient surgery clinic has incurred a significant unfavorable variance. The director of the clinic is quite concerned, as this has never occurred before. The director gathers information on total nursing care hours, average hourly rate of the employees, and total patient visits to determine what caused the variance. In addition, the director receives the patient acuity levels for the month of February. Budget 420 Patient Days Nursing Care Hours HPPD Average Hourly Pay Total Payroll Costs 5.0 $35.00 Actual 510 5.6 $45.00 Budget Variance $10.00 (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? During the month of February, an outpatient surgery clinic has incurred a significant unfavorable variance. The director of the clinic is quite concerned, as this has never occurred before. The director gathers information on total nursing care hours, average hourly rate of the employees, and total patient visits to determine what caused the variance. In addition, the director receives the patient acuity levels for the month of February. Budget 420 Patient Days Nursing Care Hours HPPD Average Hourly Pay Total Payroll Costs 5.0 $35.00 Actual 510 5.6 $45.00 Budget Variance $10.00 (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?

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To complete the monthly personnel report for the surgical unit we need to calculate the actual payroll costs and variances for each category Heres the breakdown 1 Monthly Personnel Report Budget Actua... View the full answer