Company: Omega Healthcare Services

Scenario: Budget Preparation

Department	Budgeted Costs ($)	Actual Costs ($)	Budgeted Revenue ($)
Pediatrics	300,000	310,000	400,000
Surgery	500,000	480,000	600,000
Radiology	200,000	210,000	250,000

Requirements:

1. Variance Analysis:
   • Calculate the cost variances (both total and for each department) and revenue variance for Omega Healthcare Services.

1. Flexible Budgeting:
   • Prepare a flexible budget for Omega Healthcare Services based on the actual activity level, assuming a 5% increase in patient visits from the budgeted level.

1. Performance Evaluation:
   • Evaluate the performance of each department at Omega Healthcare Services based on the variances identified in the budget variance analysis.

1. Cost Control Measures:
   • Recommend two cost control measures that Omega Healthcare Services could implement to reduce the overall cost variances identified.

1. Strategic Financial Planning:
   • Discuss how Omega Healthcare Services can use budget variance analysis to improve its financial planning and operational efficiency.