Nursing Finances

  

Having a budget is critical for the financial stability of an organization. Keeping track of how well the organization is actually adhering to the budget, and subsequent identification of why the budget numbers are being missed is equally important. Without this critical “why” piece, it is difficult to make the necessary adjustments to the budget or to organizational behavior that might be promoting overspending.

A good budget is built with thoughtful consideration of future costs and revenue. Though your budget is formulated with expected figures in mind, the actual resulting values may vary considerably. This variance–from projected to actual–can be a pleasant surprise or a fiscal nightmare and can make financial decision making difficult. Fortunately, variance analysis can enable management to determine why variance occurred and what can be done to mitigate its effects.

Formula need to be shown with correct anwers

• Use the Excel spreadsheet template for the Week 8 assignment
• Show all your calculations and formulas in the spreadsheet.
• Answer any questions included with the problems (as text in the Excel spreadsheet).

Variance Analysis

Though your budget is formulated with expected figures in mind, the actual resulting values may vary considerably. This variance–from projected to actual–can be a pleasant surprise or a fiscal nightmare and can make financial decision making difficult. Fortunately, variance analysis can enable management to determine why variance occurred and what can be done to mitigate its effects.

is

and your

is 50%

Actual Budget .

Salaries 345,000 413,000
Payroll Hours 11,000 9,500
Service Volume 75,000 150,000

75,000

150,000

Variable Expense Factor 40%
Volume Change Factor

Factor

Actual Budget

Salaries 345,000 413,000

Volume Adjustment

Volume Adjustment

.00

$0.00

$0

						Name:	Assignment:
A good budget is built with thoughtful consideration of future costs and revenue Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	.
Using the following performance data, calculate the volume adjusted labor rate variance and volume adjusted efficiency variance. Your	Variable Expense Factor	40%	Volume Change Factor
		Actual			Budget
		Salaries			345,000			413,000
	Payroll Hours		11,000		9,500
	Service Volume			75,000			150,000
Actual Volume
Budget Volume
-50%
		Volume Adjustment	-20%
Description	Variance (Unfavorable)
68,000
Volume Adjusted Salaries
Paid Hours
Volume Adjusted Hours
Labor Rate
Labor Rate Variance			$0
Efficiency Variance
Total Variance
For this Assignment, run a variance analysis. Based on the information you obtain,assess the results of the analysis, suggest potential causes of the budget variances and an explanation for addressing the situation.
Answer:

Sheet2

Sheet3