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Posted: March 1st, 2023

HSM 310-Healthcare Financial Management and Economics

Healthcare Financial Management and EconomicsWeek 9 Assignment — Budgeting and Variance AnalysisInstructions:The following are budgeted and actual revenues and expenses for a hospital.BudgetedActualRevenuesSurgical Volume2,5002,700Gift Shop Revenues$19,000$20,000Surgery Revenues$600,500$850,750Parking Revenues$16,000$18,000Patients Days27,00027,000Pharmacy$120,000$160,000Misc Supplies$66,000$77,500Fixed Overhead Costs$808,000$880,000ExpensesUsing an Excel spreadsheet to show your calculations:1. Determine the total variance between the planned and actual budgets forSurgical Volume. Is the variance favorable or unfavorable?2. Determine the total variance between the planned and actual budgets forPatient Days. Is the variance favorable or unfavorable?3. Determine the service-related variance for Surgical Volume.4. Determine the service-related variance for Patient Days.5. Prepare a flexible budget estimate. Present a side-by-side budget, flexiblebudget estimate, and the actual Surgical Revenues.6. Prepare a flexible budget estimate. Present a side-by-side budget, flexiblebudget estimate, and the actual Patient Expenses.7. Determine what variances are due to change in volume and what variancesare due to change in rates.© 2015 Laureate Education, Inc.Page 1 of 1

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