VLab 8: Create budgets and identify variances

Prepare a 12-month budget for the HIM Department of ABC Hospital.

1. Use an Excel spreadsheet. Name the first column Description and the next 12 columns with the months of the year. Add a total column after the 12^th month. The last row should have the totals for each category under description.
2. Use at least 8 categories under the Description column; i.e.: Payroll, Office Supplies, Continuing Education, etc.
3. Fill out each cell with the numbers of your budget.

Your spreadsheet should look similar to the image below:

Description	Jan	Feb	...	Dec	Total
1.
2.
3.
4.
5.
6.
7.
8.
Total

B. Imagine that the year has passed by and your boss asks you to present to him the variances on the budget you submitted at the beginning of the year.

Use the budget that you prepared on A. and add a column with the actual numbers. In some categories your department was able to save some money but in others your numbers are above your estimates.

Your spreadsheet should look similar to the image below:

Description	Jan	Feb	...	Dec	Total	Actual	Variance (+ / -)
1.
2.
3.
4.
5.
6.
7.
8.
Total

1. Choose a suitable graph to compare your estimate with the actual numbers.
2. Make sure your graph has a name and a legend clearly showing the categories of your budget.
3. Name sheet 1: 2018 Budget and sheet 2: 2018 Budget Graph
4. Give a succinct explanation of the positive / negative variances.