The budget scenario consists of actual and budgeting figures. Assume that Eastsi

Question

The budget scenario consists of actual and budgeting figures. Assume that Eastside Urgent Care Clinic anticipated that it would provide 2,500 flu shots in 2010 to noninsured patients at $10 per shot. The revenue and expenses were budgeted for 2,700 shots in 2010 to noninsured patients. The budgeted expenses were $5,000. Assume that the clinic provided on 2,455 flu shots to noninsured patients, or 98%. The actual expenses were $4,500.

Calculate the following:

Static budget variance,

Revenue, Expenses,

Excess of expenses over revenue.

(Please show the work)

Explanation / Answer

Revenue variance=Budgeted - Actual=2500*10-2455*10=$450(Unfavourable)

Expense variance=Budgeted - Actual=5000-4500=$500(Favourable)

Excess of expense over revenue=Revenue-Expense=24550-4500=$20050.

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