You are an administrator at Jiranna Healthcare. You have been asked to conduct a budget variance analysis: analyzing performance by comparing budgeted workload, revenue, and expenses for a range of different service lines, with actual workload, revenue, and expenses for those service lines.
Open the document Variance Analysis Case Study, where you will find data on the expenses, revenue, and inpatient product lines at Jiranna Healthcare.
Analyze the data and prepare a 1-page report. In your report, address each of the five following questions. In each case, show the calculations that you conducted to answer the question. Then, explain your conclusion and how your calculations support your reasoning. (MUST USE THE ATTACHED SPREADSHEET TO SHOW CALCULATIONS)
What was the hospital’s original profit forecast (assume away any issues with depreciation, taxes, etc.)? Halfway through the fiscal year, what is the hospital’s revised projection for FY11 profits?
Which inpatient service lines are over budget? Which inpatient service lines are over budget after accounting for workload increases?
