•Calculate the variance analysis for the information provided below using this problem and the formula provided...

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Finance

•Calculate the variance analysis for the information providedbelow using this problem and the formula provided to you.
Data:
Budget Actual Variance
Total Payroll Cost $65,600.00 $78,627.50 $13,027.50
Total Nursing Hours 1600 1850 250
Composite Hourly Pay Rate $30.00 $33.00 $3.00
Patient Days 350 375 25
Formulas to use in calculations for variance analysis:
Step #1: Compute the Efficiency Variance.
Budgeted nursing hours / Budgeted patient days =HPPD Budgeted
Actual nursing hours / Actual patient days = HPPD Actual
HPPD Actual - HPPD Budgeted
Actual patient days X extra nursing care hours = Total extra
Total extra X Budgeted hourly wage = Efficiency (in dollars)
Step #2: Compute the volume variance.
Actual patient days - Budgeted patient days = A
A X Budgeted HPPD = B
B X Budgeted pay = V (dollars)
Step #3: Compute the cost variance.
Actual $ paid - Budgeted $ paid = D
D X Actual hours worked = C (dollars)
Step #4: Calculate the Budget Variance.
Efficiency + Volume + Cost = Budget Variance

Answer & Explanation Solved by verified expert

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Step 1 Compute the Efficiency VarianceBudgeted nursing hours Budgeted patient days HPPDBudgeted457Actualnursing hours Actual patient days HPPD See Answer

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	Budget	Actual	Variance
Total Payroll Cost	$65,600.00	$78,627.50	$13,027.50
Total Nursing Hours	1600	1850	250
Composite Hourly Pay Rate	$30.00	$33.00	$3.00
Patient Days	350	375	25