Using the information provided, prepare a salary budget for FYX2 (7/1/X1 to 6/30/X2). Volume in the budget year is planned to be 5,400 patient days, and

staff needs are for six hours of hands-on RN care per patient day. Productive time is 85 percent of total paid time. For purposes of this solution, the assumption is that nurses can be hired only in half FTE increments (e.g., if you calculate a need for 12.8 FTEs, 13 FTEs must be budgeted).

A pay raise will be given to all staff on May 1 of each year at a rate of 6 percent. The July 1, 19X1, rate of pay for new hires is set at $13.00/hour regardless of the date of hire.

The following are the current staff with FTE values and hourly rates of pay as of November 4, 19X0:

Abelein	1.0	$14.30
Brenchley	1.0	13.80
Brownstein	0.5	13.50
Colson	1.0	14.00
Cottingham	0.5	12.75
Cyr	1.0	14.20