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Variance Analysis: JDK Memorial Hospital

CASE STUDY - PART 3
JKD Memorial Hospital

The first quarter is now complete and your boss has asked you to perform a variance analysis of the Nursing Department at JKD Memorial. As you may recall, the quarterly departmental budget for nursing was as follows:...

In addition, it was assumed that there would be a total of 29,295 hours of nursing time at an average wage of $40.01 per hour during the first quarter.
In reality, both volume and expenditures were higher than anticipated in the first quarter as shown below:...
The total number of nurse hours was 32,575 and the average wage was $44.50.

Your Task: Put together a variance report for the variable salaries component of the Nursing Department. Be sure to include: Total Variance, Volume Variance, Quantity Variance , and Price Variance.

Please see attached for full question, including all tables and required information.

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CASE STUDY - PART 3
JKD Memorial Hospital

The first quarter is now complete and your boss has asked you to perform a variance analysis of the Nursing Department at JKD Memorial. As you may recall, the quarterly departmental budget for nursing was as follows:
Department of Nursing
Quarterly Expense Budget

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Fixed Salaries $50,000 $50,000 $50,000 $50,000 $200,000
Variable Salaries $1,172,093 $1,015,814 $859,535 $1,152,558 $4,200,000
Total Salaries $1,222,093 $1,065,814 $909,535 $1,202,558 $4,400,000

Supplies $44,444 $36,741 $40,889 $37,926 $160,000

Total Departmental Expenses $1,266,537 $1,102,555 $950,424 $1,240,484 $4,560,000
This Expense budget was based on the anticipated volume of:
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Oncology 22 20 17 22 81
Cardiac 22 19 16 21 78
Rhinoplasty 16 13 11 16 56
Total 60 52 44 59 215
In addition, it was assumed that there would be a total of 29,295 hours of nursing time at an average wage of $40.01 per hour during the first quarter.
In reality, both volume and expenditures were higher than anticipated in the first quarter as shown below:

First quarter expenditures:
Fixed Salaries $50,000
Variable Salaries $1,449,588
Total Salaries $1,499,588
Supplies $56,472
Total Departmental Expenses ...

Solution Summary

The expert examines JDK Memorial Hospital Variance Analysis.

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