Q 1a: Perform total revenue and expenditure variances for the Hospital budget for BOTH years as follows. State if each is favorable or unfavorable. (5 sections) Revenue variance 2001 Revenue variance 2002 Expenditure variance 2001 Expenditure variance 2002 What does this analysis tell us about the healing touch Hospital in the past 2 years? Q1b: Calculate the Expenditure Quantity Variance AND Expenditure price Variance for (a) doctor salaries and (b) supplies for 2002. State if each result is favorable or unfavorable.(6 sections) Expenditure quantity variance for doctors salaries 2002: 2 Expenditure price variance for doctors salaries 2002: 0 What does this tell us about the number of doctors and their pay? The hospital had the same number of doctors in 2002 as it did in 2001. The total of 52 doctors was 2 doctors above budget, but the price was neutral because the salary per doctor decreased. Expenditure quantity variance for supplies 2002: -3,333 Expenditure price variance for supplies 2002: $400,000 What does this tell us about the amount and price of supplies? The hospital used fewer supplies, but the total price of the supplies increased due to an increase in average cost of supplies per unit. Q1c: Calculate the Revenue Quantity AND Revenue Price Variance for (a) Patient Fees and (b) Insurance Reimbursements for 2002. State if these variances are favorable or unfavorable. (6 sections) Expenditure quantity variance for patients fees 2002 Expenditure price variance for patients fees 2002 What does this tell us about the patients revenues? Expenditure quantity variance for insurance reimbursement 2002 Expenditure price variance for insurance reimbursement 2002 What does this tell us about insurance reimbursement at Healing Touch? Q1d. On the basis of your findings above, give your preliminary assessment of why the Healing touch Hospital is losing money.