I. 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? 13 [E] 14 15 [G] Surgical volume [A] Gift shop revenues [3] Surgery revenues [C] Parking revenues [D] Total variance [E] Budgeted 2,800 S 1 g,ooo $925,500 S 16,000 $63,300 Actual 2,700 S 19,000 $850,750 $15,000 $887,450 Variance 1,000 SO $74,750 S 1,000 $75,850 Variance $75,850 So $1,000 $74,850 favorable favorable favorable favorable favorable Patient days [A] Pharmacy [3] Miscellaneous supplies [C] Fixed overhead costs [D] Total variance 4. Determine the service related variance for Patient Days. Total variance [I] Amt. explained by fixed overhead [H] Other fixed expenses Service-related variance [J-K L] 27,000 $120,000 S 66,000 S 808,000 27,000 S 140,000 $77,500 S 880,000 Variance O $20,000 $11,500 $72,000 $103,500 Variance Slos,soo $72,000 $31,500 favorable unfavorable u nfavorable u nfavorable u nfavorable S. Determine the service related variance for Surgical Volume. Total variance [I] Gift shop revenue variance [F] Parking revenue variance [H] Service-related variance [J-K-L] 5. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate, and the 6. Prepare a flexible budget estimate. Present side-by-side budget, flexible budget estimate, and the actual patient actual surgical revenues. Surgical volume [A] Surgical revenue per unit [C/ A] Surgical revenue [C] Budgeted $330.56 $925,500 2,700 $330.56 $892,512 2,700 $315.09 $850,750 expenses. Patient days [A] Cost per patient day (Pharm + Misc) Total cost (Pharm+Misc) [N x O] Budgeted 27,000 $6.89 $186,030 27,000 $6.89 $186,030 27,000 $8.05 $217,350 7. Determine what variances are due to change in volume and what variances are due to change in rates. Budgeted Flexible Actual Variance