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Solution Library
Calculate The Difference In Revenue And Cost From Budget
Question
Rotary Hospital’s static nursing labour expense budget for the month of November 2012 was $64,800 (1,200 patients * 1.5 nursing labour hours per patient * $36 per nursing labour hour). During the month of November 2012 Rotary Hospital actually cared for 1,300 patients. The actual nurse labour expense for the month was $84,175 and 2,275 nursing hours were actually worked. Calculate Rotary Hospital’s total variance between its budget and actual nurse labour expense. How much of this variance was due to:
a. actual patient numbers being different from the budget?
b. the hourly cost of nursing services being different from budget?
c. the number of nursing hours used being different from budget?
d. what factor caused the biggest difference between the actual and budgeted
Summary
The question belongs to Finance and it discuses about calculating the number of patients differing from budget, the hourly cost of nursing services differing from budget, etc.
Total Word Count NA
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