Instructions: 1. Determine the total variance between the planned and actual budgets. 2. Calculate the amount of unexplained variance. 3. Prepare a flexible budget estimate for variable costs. Compare budget, flexible budget, and acutal (show related volume). 4. Determine what variance is due to change in volume and what variance is due to change in rates. 5. Determine the volume variance and rate variance based on per unit rates.

O Variance Analysis Exercise.xisx fr Newark University Health Center (MNC) Variance Exercise A Exercise BE Exercise C Newark University Health Center (MNC) Variance Report, 2nd Quarter 2018 2nd Quarter 2018 BudgetAVariance Item 4 MD & NPs on staff s Total encounters 6 Revenue: 7 ACO revenue 8 Grant funding 9 Private collections 10 Donations 11 Total Revenue 12 Expenses 13 Cost per patient encounter 14 Personnel expense NPs 15Benefits @ 30% 16 Clinic Manager 0.5 FTE 17 Clerical 0.8 FTE x 2 18 Total personnel expense 19 Medical supplies 201 Non-medical supplies 21Depreciation 22 Capital Expenses 23 Overhead 24 Total non-personnel expense 980 997 12,500 $112,500 $12,500 $12,500 $3,750$3,102 5,000 $5,489 $134 $52,500 $52,500 15,750$15,750 $7,500 $7,500 10,000 $10,000 $85,750 $85,750 25,000 $33,563 1,500 $1,417 $974 $10,000 $9,743 $2,500 $2,500 $128 : $1,000 Total health center expense 26 Net Profit or Loss (P&L) O Variance Analysis Exercise.xisx fr Newark University Health Center (MNC) Variance Exercise A Exercise BE Exercise C Newark University Health Center (MNC) Variance Report, 2nd Quarter 2018 2nd Quarter 2018 BudgetAVariance Item 4 MD & NPs on staff s Total encounters 6 Revenue: 7 ACO revenue 8 Grant funding 9 Private collections 10 Donations 11 Total Revenue 12 Expenses 13 Cost per patient encounter 14 Personnel expense NPs 15Benefits @ 30% 16 Clinic Manager 0.5 FTE 17 Clerical 0.8 FTE x 2 18 Total personnel expense 19 Medical supplies 201 Non-medical supplies 21Depreciation 22 Capital Expenses 23 Overhead 24 Total non-personnel expense 980 997 12,500 $112,500 $12,500 $12,500 $3,750$3,102 5,000 $5,489 $134 $52,500 $52,500 15,750$15,750 $7,500 $7,500 10,000 $10,000 $85,750 $85,750 25,000 $33,563 1,500 $1,417 $974 $10,000 $9,743 $2,500 $2,500 $128 : $1,000 Total health center expense 26 Net Profit or Loss (P&L)