With the $40,000 variance in payroll, only $23,317 is attributed to volume increase. How will you...

  

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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 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

Answer rating: 100% (QA)

To explain the remaining 16683 of the payroll variance we need to consider factors other than volume ... View the full answer