INITIAL BUDGET

INITIAL BUDGET

a. The budget anticipated 65,000 inpatient days this year at an average of $960 per day.

a. The budget anticipated 65,000 inpatient days this year at an average of $960 per day.

b. Inpatient expenses were budgeted at $850 per day.

b. Inpatient expenses were budgeted at $850 per day.

c. The budget anticipated 27,000 outpatient visits this year at an average of $675 revenue

c. The budget anticipated 27,000 outpatient visits this year at an average of $675 revenue

per visit.

per visit.

d. Outpatient expenses were budgeted at $520 per visit.

d. Outpatient expenses were budgeted at $520 per visit.

ACTUAL RESULTS

ACTUAL RESULTS

a. Assume that only 56,550 or 87% of the inpatient days are going to actually be achieved

a. Assume that only 56,550 or 87% of the inpatient days are going to actually be achieved

for the year.

for the year.

b. The average revenue of $960 per day will be achieved for these 56,550 inpatient days.

b. The average revenue of $960 per day will be achieved for these 56,550 inpatient days.

c. The Outpatient visits will actually amount to 120% of budget or 30,240 for the year.

c. The Outpatient visits will actually amount to 120% of budget or 30,240 for the year.

d. The average revenue of $475 per visit will be achieved for these 30,240 visits.

d. The average revenue of $475 per visit will be achieved for these 30,240 visits.

e. Actual inpatient expenses will amount to $14,600,000 and actual outpatient expenses

e. Actual inpatient expenses will amount to $14,600,000 and actual outpatient expenses

will amount to $5,220,000.

will amount to $5,220,000.

REQUIRED:

REQUIRED:

A. Prepare the budget and the actual on the attached worksheet.

A. Prepare the budget and the actual on the attached worksheet.