Budget Variance Analysis

The purpose of this assignment is to review the contents of a budget and to create a budgetvariance analysis. In this assignment, you will complete the attached Week 2 Assignment Template,which will be submitted for grading.To prepare for this assignment, you should: ● Complete all of this week’s reading. ● Access and review the Week 2 Assignment Template. ● Conduct necessary and relevant research.

In this assignment, write a 600- to 1000-word paper that includes the following components:

1. Provide an introduction that describes how budgeting plays a role in the strategic planningprocess (at least 200 words)a. As you are completing your strategic plan, remember to take into considerationcommunity benefits, bill types, tax exemption status, and other key strategies from yourweek’s reading.2. Describe the use of flexible budgets and variance analysis (at least 200 words). 3. Review the budgeted and actual revenues/expenses for Wesley Ambulatory Care as listed inTable 1 of the Week 2 Assignment Template.4. Using the Week 2 Assignment Template, conduct a variance analysis by filling in the totalvariances associated with the planned and actual expenses, and indicate whether it isfavorable or unfavorable. 5. Summarize your findings and make recommendations on how the organization may addressunfavorable variances (at least 200 words). 6. Follow the information in the Week 2 Assignment Template.7. Follow APA formatting for your references and citations. 1
Budget Variance Analysis
[Enter Name Here]
[Enter Professor Name Here]
[Enter the Date the Assignment is Due Here]
2
Budget Variance Analysis
Provide an introduction that describes how budgeting plays a role in the strategic
planning process (at least 200 words). As you are completing your strategic plan, remember to
take into consideration community benefit, bill types, tax exemption status and other key
strategies from your week’s reading. You can remove these instructions and type your
introduction here.
Describe the use of flexible budgets and variance analysis (at least 200 words). You can
remove these instructions and type here.
Review the following budgeted and actual revenues/expenses for Wesley Ambulatory
Care. Conduct a variance analysis by filling in the total variances associated with the planned
and actual expenses along with whether it is favorable or unfavorable. You can remove these
instructions and type directly in the table below.
Table 1
Wesley Ambulatory Care Budgeted and Actual Revenues and Expenses
Budget Item
Patient Volume
Budgeted
Actual
Total
Favorable
Variances
or
(1-2)
Unfavorable
2,700
2,500
?
?
Ambulatory Surgery Revenues
$435,000
$418,000
?
?
Cafe Revenues
$19,000
$20,000
?
?
3
Total Revenues
$454,000
$438,000
?
?
Expenses Patients Days
25,000
25,000
?
?
Pharmacy Expenses
$150,000
$160,000
?
?
Surgical Supplies
$65,000
$75,500
?
?
Misc. Supplies
$15,000
$11,500
?
?
Total Expense
$230,000
$247,000
?
?
Operating Income
$224,000
$191,000
?
?
Summarize your findings, and make recommendations on how the organization may
address unfavorable variances (at least 200 words). You can remove these instructions and type
here.
4
References