• Given the budget information in the chart on this tab, calculate the variance for each category. Apply what you have learned about variances and label each variance as favorable or unfavorable. Hint: Notice the differences in favorable vs. unfavorable variance when you are looking at expense vs. revenue.
• Carefully consider the report for May Budget Comparison - Physical Therapy. Create a Word document, providing a brief summary of possible justifications for the unfavorable variances

1 CALCULATING OVERHEAD VARIANCE # 2 2 Given the budget information below, calculate the variance for each category below. 3 Apply what you have learned about variances and label each variance as favorable or unfavorable. 4 *Hint: Notice the differences in favorable vs unfavorable variance when you are looking at expense vs revenue. 5 6 May Budget Comparison - Physical Therapy Favorable or 7 Category Actual Budget Variance Unfavorable 8 Expense 9 Adminstration $ 11,654 $ 12,000 $ (346) F 10 Salary/Benefits $ 103,935 $ 98,000 11 Rent $ 12,500 $ 12,500 12 Supplies $ 7,790 $ 6,000 13 Maintenance $ 473 $ 500 14 Total Expenses $ 136,352 $ 129,000 15 16 Revenue 17 Patient Payments $ 2,540 $ 3,000 $ (460) 18 Third-Party Payments $ 1,540 $ 1,000 19 Total Revenue $ 4,080 $ 4,000 20 Net Income $ (132,272) $ (125,000) 21 22 23 BUDGET VARIANCE ANALYSIS 24 Carefully consider the above report. Write a brief summary of possible justifications for the unfavorable U 25 variances