With the $40,000 variance in payroll, only $23,317 is attributed to volume increase. How will you explain the remaining $16,683? Acuity, transfers, overtime? Payroll Variance This Month ($40,000) Patient days Payroll dollars Cost/patient ay Budget 450 $209,854 $466.34 Actual 500 $249,854 $499.71 Variance 50 patient days over what was budgeted ($40,000) over what was budgeted ($33.37/patient day) more than budgeted Analysis of variance: Volume: What portion of the variance can be explained by the volume increase of 50 patient days? 50 days x $466.34 per patient day (as budgeted) = $23,317