The administrator of Pearland Nursing Home is very aware of needing to keep his cost down since he just negotiated a new arrangement with a large insurance company that will pay him a fixed amount per patient day. Listed below are budgeted and actual expenses for the previous month. Actual patient days were 30,000 compared to budgeted patient days of 24,000.

Pearland Nursing Home Budgeted and Actual Expenses Budget Cost @ Actual Cost Budgeted 24,000 Patient @ 30,000 Cost Per Unit Days Patient Days Pharmacy Costs Variable $ 100,000.00 $ 4.167 $ 140,000.00 Misc Supplies Costs Variable U 56,000.00 $ 2.333 $ 67,500.00 Fixed Overhead Costs $ 708,000.00 S 29.50 $780,000.00 Total $ 864,000.00 S 36.00 $987,500.00Budgeted Cost Budgeted Cost Budgeted @ 24,000 , @ 30,000 , Cost per Unit , patient days patients days Pharmacy Cost - Variable S 100,000 5 4.167 S 125,010 Misc Supplies Cost Variable 5 56,000 S 2.333 5 69,990 Fixed Overhead Cost 5 708,000 5 29.50 S 708,000 Total 5 864,000.00 5 36.000 5 903,000