Exercise 1. Almana Hospital uses patient-visits as its measure of activity. The
ID: 2523202 • Letter: E
Question
Exercise 1. Almana Hospital uses patient-visits as its measure of activity. The hospital has provided the following report: Almana Hospital Comparison of Actual Results to Planning Budget For the Month Ended May 31 Actual Results 2,000 $76,110 Planning Budget 2,300 Variances Patient-visits Revenue ($36.40q Expenses Personnel expenses ($20,400 $10.40q) 43,240 44,320 Medical supplies ($1,100 $6.60q) 13,990 16,280 Occupancy expenses ($6,400$1.50q) 9,800 9,850 Administrative expenses ($2,400 + $0.40q) Total expense Net operating income $9,950 Required: Prepare a report showing the hospital's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U) Fill in the last column of the table above.Explanation / Answer
Answer
Actual results (A)
Planning Budget (B)
Variances ( A - B)
Patient Visits
2000
2300
300
Unfavourable
Revenues
$ 76,110.00
$ 83,720.00
$ 7,610.00
Unfavourable
Expenses:
$ -
Personnel Expenses
$ 43,240.00
$ 44,320.00
$ 1,080.00
Favourable
Medical Supplies
$ 13,990.00
$ 16,280.00
$ 2,290.00
Favourable
Occupancy Expenses
$ 9,800.00
$ 9,850.00
$ 50.00
Favourable
Administrative expenses
$ 3,080.00
$ 3,320.00
$ 240.00
Favourable
Total expenses
$ 70,110.00
$ 73,770.00
$ 3,660.00
Favourable
Net Operating Income
$ 6,000.00
$ 9,950.00
$ 3,950.00
Unfavourable
Actual results (A)
Planning Budget (B)
Variances ( A - B)
Patient Visits
2000
2300
300
Unfavourable
Revenues
$ 76,110.00
$ 83,720.00
$ 7,610.00
Unfavourable
Expenses:
$ -
Personnel Expenses
$ 43,240.00
$ 44,320.00
$ 1,080.00
Favourable
Medical Supplies
$ 13,990.00
$ 16,280.00
$ 2,290.00
Favourable
Occupancy Expenses
$ 9,800.00
$ 9,850.00
$ 50.00
Favourable
Administrative expenses
$ 3,080.00
$ 3,320.00
$ 240.00
Favourable
Total expenses
$ 70,110.00
$ 73,770.00
$ 3,660.00
Favourable
Net Operating Income
$ 6,000.00
$ 9,950.00
$ 3,950.00
Unfavourable
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