Now if's Your Tum: Practice Exercise $16-1$: Budgeting

Budget assumptions for this exarcise inclade both impatient and outpatient reveane and expense. Assumptions are as follows:

As to the initial budget:

The budget anticipated $30,000$ inpatient days this yext at an average of $$650$ revenue per day.

Inpatient expenser were bud geted at $$600$ per patient day.

The budget anticipated $10,000$ outpatient viuits this yexr at an average of $$400$ revenue per visit.

Outpatient expenses were bodgeted at $$380$ per viat.

As to the actual results:

Assume that caly $27,000,$ cr $90$ percemt, of the inpubient duys are going to

actually.be achieved for the year.

The average revenue of $$650$ per day will be achirved for these $27,000$ impatient days.

The outpatient visits will artwally: awow: to $110$ percent, or $11,000$ for the year.

The average revenue of $$400$ per visit will be achieved for these $1,100$ visits.

Further assume that, due to the berovic efforts of the Chief Financial Oficer, the actual impatient expenses will amount to $$16,100,000$ and the actual cutpatient expenses will amount to $$4,000,000.$

Required

Set up three worksheets that follow the format of those in Example $16$A above. However, in each of your worksheets make two lines for Revenue; label one as Revenue$-$Inpatient and the other Revenue$-$Outpatient. Add a Revenue Subtotal line. Likewise, make two lines for Expense; label one as Expense$-$Inpatient and the other Expense$-$Outpatient. Add an Expense Subtotal line.

Using the new assumptions, complete the first worksheet for $"$As Budgeted"

Using the new assumptions, complete the second worksheet for "Actual."

$*.$ Using the new assumptions, complete the third worksheet for "Static Budget Variance"