UU Exercise 9.10 Complete the following exercises. 1. In deciding whether to purchase or lease new scanning equipment, the HIM supervisor at Community Hospital calculates the payback period. The hospital's required payback period is three years. If the equipment costs $32,000 and generates $4,500 per year in savings, what would be the payback period for this equipment? Should the department purchase this equipment? 2. The coding section in the HIM department shows its first-quarter budget analysis as having a budgeted cost of operation of $72,000. However, the actual cost of operation was $76,000. Calculate the budget variance. Round to one decimal place. 3. Administration at Community Hospital System (which includes an inpatient hospital, skilled nursing facility. durable equipment company, mental health facility, and outpatient counseling center) will begin a conversion project from the current EHR to another that will allow all the facilities access to one EHR. The estimated cost of the new EHR is $2,750,000. The savings with the new system is estimated to be $575,000 per year. What is the payback period? Round to two decimal places. 4. The HIM department shows the following monthly report. Create an Excel spreadsheet to calculate the percentage of variance for each line item and the total. Round to two decimal places. 164 Chapter 9 Statistics Computed within the Health Information Management Department Chapt Comple Percentage of Variance Line Item Service contracts Education/conferences Travel Dues/memberships Subscriptions/books Supplies Total Community Hospital HIM Department Budget Variance Annual Report, 20XX Budgeted Amount Actual Amount $2,000 $2,500 $4,500 $2,400 $2,000 $1,750 $720 $545 $600 $250 $725 $600 5. Your HIM manager has been approved to add $25,000 to the salary budget to pay the coding professionals overtime to catch up on coding records so the claims may be billed. Coding professional A earns $15.75 per hour, coding professional B earns $16.00 per hour, coding professional C earns $18.40 per hour, and coding professional D earns $17.29 per hour. How many total hours of overtime can be worked if each coding professional works an equal amount of overtime earning time and a half? Round to two decimal places