Attached Fies: Final Income Statement for Variance Analysis.xls 124 KB) Variance Analysis Project Description: Review the attached financial statement and related budget. Identify the significant variances. There are ten of them. Remember that a significant variance is one that deviates from the budget by more than 5%. Once you have idenified the variances suggest two to three possible causes of each variance. Finally, make two to three recommendations on how you would try to resolve each variance as a manager Assignment of Points: There are ten significant variances to budget in the financial statement. There are three parts to the assignment Identify the 10 significant variances 15 points Possible causes of these variances 20 points Possible solutions to resolve the variances 25 points Total Points 60 points A B c F G H E Variance 1 Revenue insurance revenue supplemental income other operating income Actual $411,905 $26,502 $5,682 $444,089 D Budgeted $465,222 $25,589 $5,485 $496,296 3 4 5 Total Revenue 6 7 Operating Expenses 8 Staffing 9 10 11 12 13 14 15 Benefits 16 17 18 19 20 Taxes 21 $148,999 $37,459 $26,212 $55,219 $25,145 $10,555 $5,500 $6,182 $464 $309 $12,364 $140,852 $36,582 $27,414 $56,211 $24,318 $10,555 $5,469 $6,028 $452 $301 $12,056 $90 $9,042 $75 $7,535 $93 22 $6,631 + 23 24 25 Administrative 26 RN salary RT salary PTIOTIST salary administrative salary management salary housekeeping salary dietary salary health insurance life insurance dental insurance 403b contributions education payroll workers comp FICA Medicare Social Security office supplies postage telephone marketing legal fees accounting travel liability Insurance malpractice insurance mortgage property taxes general medical phamacy Oxygen & RT X-ray Lab food enteral feedings housekeeping supplies 27 28 29 30 31 32 33 34 35 36 Medical Supplies 37 38 39 40 41 Dietary 42 43 Maintenance $9,273 $77 $7,727 $6,800 $3.709 $510 $148 $355 $1,700 $600 $207 $56 $215 $2,658 $3,500 $105 $1,450 $7,500 $1,190 $575 $480 $1,545 $4,700 $145 $3,617 $500 $150 $350 $1,500 $100 $200 $50 $215 $1.540 $3,500 $105 $1,400 $4,800 $1,200 $600 $500 $1,500 $3,600 $150 C D B E F G general medical phamacy Oxygen & RT X-ray lab food enteral feedings housekeeping supplies laundry groundskeeping snow removal electric water sewer garbage disposal shredding fuel cable TV intemet service 36 Medical Supplies 37 38 39 40 41 Dietary 42 43 Maintenance 44 45 46 47 Utilities 48 49 50 51 52 53 54 55 Total Operating Expenses 56 Bad Debt Expense 57 Total Expenses 58 59 Net Income 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 $1,450 $7,500 $1,190 $575 $480 $1,545 $4,700 $145 $95 SO $380 $362 $590 $240 $152 $46 $199 $189 $205 $386,183 $26,210 $412,393 $1,400 $4,800 $1,200 $600 $500 $1,500 $3,600 $150 $100 $0 $320 $368 $588 $231 $152 $47 $56 $189 $205 $371,445 $26,523 $397,968 + $31,696 $98,328
