Instructions:

There are two tasks for this tab:

1) 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.

2) Carefully consider the this report for May Budget Comparison - Physical Therapy. Write a brief summary of possible justifications for the unfavorable variances.

auw 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. May Budget Comparison - Physical Therapy Favorable or Variance Unfavorable Actual Budget (346) 7 Category 8 Expense 9 Adminstration 10 Salary/Benefits 11 Rent 12 Supplies 13 Maintenance 14 Total Expenses $ $ $ $ $ $ 11,654 $ 103,935 $ 12,500 $ 7,790 $ 473 $ 136,352 $ 12,000 $ 98,000 12,500 6,000 500 129,000 15 3,000 $ (460) 16 Revenue 17 Patient Payments 18 Third-Party Payments 19 Total Revenue 20 Net Income $ 2,540 $ $ 1,540 $ $ 4,080 $ $ (132,272) $ 4,000 (125,000) 23 BUDGET VARIANCE ANALYSIS 24 Carefully consider the above report. Write a brief summary of possible justifications for the unfavorable 25 variances. auw 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. May Budget Comparison - Physical Therapy Favorable or Variance Unfavorable Actual Budget (346) 7 Category 8 Expense 9 Adminstration 10 Salary/Benefits 11 Rent 12 Supplies 13 Maintenance 14 Total Expenses $ $ $ $ $ $ 11,654 $ 103,935 $ 12,500 $ 7,790 $ 473 $ 136,352 $ 12,000 $ 98,000 12,500 6,000 500 129,000 15 3,000 $ (460) 16 Revenue 17 Patient Payments 18 Third-Party Payments 19 Total Revenue 20 Net Income $ 2,540 $ $ 1,540 $ $ 4,080 $ $ (132,272) $ 4,000 (125,000) 23 BUDGET VARIANCE ANALYSIS 24 Carefully consider the above report. Write a brief summary of possible justifications for the unfavorable 25 variances