Total Actual Cost

Special
IUD Oral Conc Follow Up
Follow Up

Actual Visits 2750 2200 1000 600

Actual Variable Exp

$ 218.00 $ 114.00 $ 161.00 $ 15.00
per unit

Total Variable Exp $ 599,500.00 $ 250,800.00 $ 161,000.00 $ 9,000.00

Actual Fixed Cost

Total Actual Cost

Total Variance $ 145,750.00 $ 85,800.00 $ 51,000.00 $ 3,000.00

Variance per Unit $ 53.00 $ 39.00 $ 51.00 $ 5.00
 Total Flexed budget cost
Special
Total IUD Oral Conc
Follow Up

6550 Actual Visits 2750 2200 1000

Budgeted Variable
Exp $ 165.00 $ 75.00 $ 110.00
per unit

Total Budgeted
$ 1,020,300.00 $ 453,750.00 $ 165,000.00 $ 110,000.00
Variable Exp

$ 100,000.00 Budgeted Fixed Cost

$ 1,120,300.00 Total Budgeted Cost

See at the bottom of your friends working. Its matching

t cost

Follow Up Total

600 6550

$ 10.00

$ 6,000.00 $ 734,750.00

$ 100,000.00

$ 834,750.00
 Variance Calculations Part 1

IUD

Physician Care Actual Budegted

Avg mint per Visit 25 30
Wage per visit $ 1.20 $ 1.00

Physician Price Variance $ 5.00

Physician Efficiency Variance $ (5.00)
Total Physcian Variance per visit $ -
Actual Cases 2750.00
Total Physician Variance $ -

Nursing Care Actual Budegted

Avg mint per Visit 40 30
Wage per visit $ 0.60 $ 0.50

Nursing Price Variance $ 4.00

Nursing Efficiency Variance $ 5.00
Total Nursing Variance per visit $ 9.00
Actual Cases 2750.00
Total Physician Variance $ 24,750.00

Medical Supplies Actual Budegted

Avg units per Visit 4 3
price per unit $ 21.00 $ 25.00

Medical Supplies Price Variance $ (16.00)

Medical Supplies Usage Efficiency Variance $ 25.00
Total Medical Supplies Variance per visit $ 9.00
Actual Cases 2750.00
Total Physician Variance $ 24,750.00

Laboratory Actual Budegted

Avg tests per Visit 5 3
price per test $ 16.00 $ 15.00

Laboratory Price Variance $ 5.00

Laboratory Usage Efficiency Variance $ 30.00
Total Laboratory Variance per visit $ 35.00
Actual Cases 2750.00
Total Physician Variance $ 96,250.00
Calculations Part 1

Oral Conc Special Follow-UP Routine Follow-Up Total Variance

Actual Budegted Actual Budegted Actual Budegted Actual

5 10 20 15 10 5 60
$ 1.20 $ 1.00 $ 1.20 $ 1.00 $ 1.20 $ 1.00 $ 1.20

$ 1.00 $ 4.00 $ 2.00 $ 12.00

$ (5.00) $ 5.00 $ 5.00 $ -
$ (4.00) $ 9.00 $ 7.00 $ 12.00
2200.00 1000.00 600.00
$ (8,800.00) $ 9,000.00 $ 4,200.00 $ 4,400.00

Actual Budegted Actual Budegted Actual Budegted Actual

30 20 25 30 5 10 100
$ 0.60 $ 0.50 $ 0.60 $ 0.50 $ 0.60 $ 0.50 $ 0.60

$ 3.00 $ 2.50 $ 0.50 $ 10.00

$ 5.00 $ (2.50) $ (2.50) $ 5.00
$ 8.00 $ - $ (2.00) $ 15.00
2200.00 1000.00 600.00
$ 17,600.00 $ - $ (1,200.00) $ 41,150.00

Actual Budegted Actual Budegted Actual

Budegted Actual
2 1 2 2 0 0 8
$ 21.00 $ 25.00 $ 21.00 $ 25.00 $ 21.00 $ 25.00 $ 21.00

$ (8.00) $ (8.00) $ - $ (32.00)

$ 25.00 $ - $ - $ 50.00
$ 17.00 $ (8.00) $ - $ 18.00
2200.00 1000.00 600.00
$ 37,400.00 $ (8,000.00) $ - $ 54,150.00

Actual Budegted Actual Budegted Actual

Budegted Actual
3 2 5 2 0 0 13
$ 16.00 $ 15.00 $ 16.00 $ 15.00 $ 16.00 $ 15.00 $ 16.00

$ 3.00 $ 5.00 $ - $ 13.00

$ 15.00 $ 45.00 $ - $ 90.00
$ 18.00 $ 50.00 $ - $ 103.00
2200.00 1000.00 600.00
$ 39,600.00 $ 50,000.00 $ - $ 185,850.00
 Total Variance

Budegted
60
$ 1.00

$ 12.00
$ -
$ 12.00

$ 4,400.00

Budegted
90
$ 0.50

$ 10.00
$ 5.00
$ 15.00

$ 41,150.00

Budegted
6
$ 25.00

$ (32.00)
$ 50.00
$ 18.00

$ 54,150.00

Budegted
7
$ 15.00

$ 13.00
$ 90.00
$ 103.00

$ 185,850.00
 Variance Calculations Part 2

IUD Oral Conc

Physician Care Actual Budegted Actual Budegted

Avg mint per Visit 25 30 5 10
Wage per visit $ 1.20 $ 1.00 $ 1.20 $ 1.00

Physician Price Variance $ 5.00 $ 1.00

Physician Efficiency Variance $ (5.00) $ (5.00)
Total Physcian Variance per visit $ - $ (4.00)

Nursing Care Actual Budegted Actual Budegted

Avg mint per Visit 40 30 30 20
Wage per visit $ 0.60 $ 0.50 $ 0.60 $ 0.50

Nursing Price Variance $ 4.00 $ 3.00

Nursing Efficiency Variance $ 5.00 $ 5.00
Total Nursing Variance per visit $ 9.00 $ 8.00

Medical Supplies Actual Budegted Actual Budegted

Avg units per Visit 4 3 2 1
price per unit $ 21.00 $ 25.00 $ 21.00 $ 25.00

Medical Supplies Price Variance $ (16.00) $ (8.00)

Medical Supplies Usage Efficiency Variance $ 25.00 $ 25.00
Total Medical Supplies Variance per visit $ 9.00 $ 17.00

Laboratory Actual Budegted Actual Budegted

Avg test per Visit 5 3 3 2
price per test $ 16.00 $ 15.00 $ 16.00 $ 15.00

Laboratory Price Variance $ 5.00 $ 3.00

Laboratory Usage Efficiency Variance $ 30.00 $ 15.00
Total Laboratory Variance per visit $ 35.00 $ 18.00

Total Cost Variance Per visit $ 53.00 $ 39.00

Actual Expense per visit $ 218.00 $ 114.00

Budgeted Expense per visit $ 165.00 $ 75.00
Variance per Unit $ 53.00 $ 39.00
rt 2

Special Follow-UP Routine Follow-Up

Actual Budegted Actual Budegted

20 15 10 5
$ 1.20 $ 1.00 $ 1.20 $ 1.00

$ 4.00 $ 2.00
$ 5.00 $ 5.00
$ 9.00 $ 7.00

Actual Budegted Actual Budegted

25 30 5 10
$ 0.60 $ 0.50 $ 0.60 $ 0.50

$ 2.50 $ 0.50
$ (2.50) $ (2.50)
$ - $ (2.00)

Actual
Budegted Actual
Budegted
2 2 0 0
$ 21.00 $ 25.00 $ 21.00 $ 25.00

$ (8.00) $ -
$ - $ -
$ (8.00) $ -

Actual
Budegted Actual
Budegted
5 2 0 0
$ 16.00 $ 15.00 $ 16.00 $ 15.00

$ 5.00 $ -
$ 45.00 $ -
$ 50.00 $ -

$ 51.00 $ 5.00

$ 161.00 $ 15.00
$ 110.00 $ 10.00
$ 51.00 $ 5.00
 Interpretation of Results (Part 3)

Part 1 Variance Interpretation

Results
Cost Type
Total Physcian Variance per visit
Total Nursing Variance per visit
Total Medical Supplies Variance per visit
Total Laboratory Variance per visit
Variance Amount
$ 12.00 Refer Variance calculation part1 tab. Tabs are hi
$ 15.00
$ 18.00
$ 103.00

As per the results, all the cost types have unfavourable variance meaning that actual cost is greater then budgeted but among
Laboratory has a higher variance per unit because we estimated that a single visit will take 7 minutes and each mintue will be
but actually it took 13 minutes per visit at the rate of 16$ per minute which makes it unfavourable.

Part 2 Variance Interpretation

Results
Visit Type Variance Amount
IUD $ 53.00 Refer Variance calculation part2 tab. Tabs are hi
Oral Conc $ 39.00
Special Follow-Up $ 51.00
Routine Follow-UP $ 5.00

As per the results, all the visit types have unfavourable variance meaning that actual cost is greater then budgeted but among
IUD and Special Follow-up are having a higher variance due to higher variance in Laboratory cost.
Oral Conc has a variance of 39$ per visit from which 18$ pertains to laboratory cost and 17$ to medical supplies.
lation part1 tab. Tabs are highlighted with green

er then budgeted but among all Laboratory Cost has a higher variance per unit amounting $103.
utes and each mintue will be charge at 15$

lation part2 tab. Tabs are highlighted with green

er then budgeted but among all IUD and Special follow-up have a higher variance per unit amounting $53 and 51$ respectively.

edical supplies.
nd 51$ respectively.
 Variance Calculations Part 4
IUD Oral Conc
Physician Care Actual Budegted Actual Budegted
Avg mint per Visit 25 30 5 10
Wage per visit $ 1.20 $ 1.00 $ 1.20 $ 1.00

Physician Price Variance $ 5.00 $ 1.00

Physician Efficiency Variance $ (5.00) $ (5.00)
Total Physcian Variance per visit $ - $ (4.00)

Nursing Care Actual Budegted Actual Budegted

Avg mint per Visit 40 30 30 20
Wage per visit $ 0.60 $ 0.50 $ 0.60 $ 0.50

Nursing Price Variance $ 4.00 $ 3.00

Nursing Efficiency Variance $ 5.00 $ 5.00
Total Nursing Variance per visit $ 9.00 $ 8.00

Medical Supplies Actual Budegted Actual Budegted

Avg units per Visit 4 3 2 1
Price per unit $ 21.00 $ 25.00 $ 21.00 $ 25.00

Medical Supplies Price Variance $ (16.00) $ (8.00)

Medical Supplies Usage Efficiency Variance $ 25.00 $ 25.00
Total Medical Supplies Variance per visit $ 9.00 $ 17.00

Laboratory Actual
Budegted Actual Budegted
Avg test per Visit 5 3 3 2
Price per test $ 16.00 $ 15.00 $ 16.00 $ 15.00

Laboratory Price Variance $ 5.00 $ 3.00

Laboratory Usage Efficiency Variance $ 30.00 $ 15.00
Total Laboratory Variance per visit $ 35.00 $ 18.00

Total Cost Variance Per visit $ 53.00 $ 39.00

Actual Expense per visit $ 218.00 $ 114.00

Budgeted Expense per visit $ 165.00 $ 75.00
Variance per Unit $ 53.00 $ 39.00
rt 4
Special Follow-UP Routine Follow-Up Total Variance
Actual Budegted Actual Budegted Actual Budegted
20 15 10 5 60 60
$ 1.20 $ 1.00 $ 1.20 $ 1.00 $ 1.20 $ 1.00

$ 4.00 $ 2.00 $ 12.00

$ 5.00 $ 5.00 $ -
$ 9.00 $ 7.00 $ 12.00

Actual Budegted Actual Budegted Actual Budegted

25 30 5 10 100 90
$ 0.60 $ 0.50 $ 0.60 $ 0.50 $ 0.60 $ 0.50

$ 2.50 $ 0.50 $ 10.00

$ (2.50) $ (2.50) $ 5.00
$ - $ (2.00) $ 15.00

Actual
Budegted Actual
Budegted Actual
Budegted
2 2 0 0 8 6
$ 21.00 $ 25.00 $ 21.00 $ 25.00 $ 21.00 $ 25.00

$ (8.00) $ - $ (32.00)
$ - $ - $ 50.00
$ (8.00) $ - $ 18.00

Actual
Budegted Actual
Budegted Actual Budegted
5 2 0 0 13 7
$ 16.00 $ 15.00 $ 16.00 $ 15.00 $ 16.00 $ 15.00

$ 5.00 $ - $ 13.00
$ 45.00 $ - $ 90.00
$ 50.00 $ - $ 103.00

$ 51.00 $ 5.00 $ 148.00

$ 161.00 $ 15.00 $ 508.00

$ 110.00 $ 10.00 $ 360.00
$ 51.00 $ 5.00 $ 148.00 Matches with the calculation
with the calculation
 Interpretation of Results (Part 5)

Results summary

IUD Oral Conc Special Follow-UP

Physcian Variance per visit $ - $ (4.00) $ 9.00
Nursing Variance per visit $ 9.00 $ 8.00 $ -
Medical Supplies Variance per visit $ 9.00 $ 17.00 $ (8.00)
Laboratory Variance per visit $ 35.00 $ 18.00 $ 50.00

Total Cost Variance $ 53.00 $ 39.00 $ 51.00

As per the results, we can see that each visit types has unfavourable cost variances meaning that actual cost is great then bud
Most of the cost variances pertains to Laboratory cost amounting 103$ per visit which clearly shows that we need to investigat
Among all the visit types, IUD and Special Follow-UP has a high variance per visit amounting 53$ and 51$ respectively.
IUD and Special Follow-Up has a high variance because of laboratory cost variance as we can see 35$ out of 53$ pertains to la
Priority Item is Laboratory Cost, we need to investigate and reconsider all the aspects such as price per minute, avg minutes re

Price vs Efficiency (Refer tab Variance Calculation Part 4)

Cost types
For physician care, we estimated a total 60 avg mintues in total for all the visit types at the rate of 1$ per minute.
In actual we spend 60 avg minutes in total but at a rate of 1.2$ per minute.
for physician care, efficiency is good. We budgeted 60 avg mintues per visit and in actual we spend 60 avg minutes.
We have an unfavourable price variance for physician cost. We estimated 1$ per minute but in actual it cost us 1.20$ per minu

For Nursing care, we estimated a total of 90 avg minutes in total for all the visit types at the rate of 0.5$ per minute.
In actual we spend 100 avg minutes in total at a rate of 0.60$ pere minute.
We have both efficiency and price variance unfavourbale for nursing care.

For medical supplies, we estimated a usage of 6 units per visit at a cost of 25$ each
In actual, it took 8 units per visit at a cost of 21$ each
we have favourable price variance and unfavourable efficiency variance for medical supplies.

For laboratory test, we estimated 7 test per visit at a cost of 15$ each
In actual, it took 13 test per visit at a cost of 16$ each.
we have an unfavourbale price and efficiency variance for lab test.
)

mmary

Routine Follow-Up Total Variance

$ 7.00 $ 12.00
$ (2.00) $ 15.00
$ - $ 18.00
$ - $ 103.00

$ 5.00 $ 148.00

al cost is great then budgeted.

at we need to investigate why it has varied so much.
1$ respectively.
ut of 53$ pertains to laboratory in IUD and 50$ out of 51$ in Special Follow-UP.
minute, avg minutes required and other operational issues.

Visit Types
IUD has a favourable efficiency and unfavourable price variance in physician care cost.
Unfavourable price and efficiency variance for IUD in nursing care cost.
avg minutes. Unfavourable efficiency and favourbale price variance for IUD in medical supplies
t cost us 1.20$ per minute. Unfavourable price and efficiency variance for IUD in lab test.

$ per minute. Oral Conc has a favourable efficiency and unfavourable price variance in physician care cost.
Unfavourable price and efficiency variance for Oral Conc in nursing care cost.
Unfavourable efficiency and favourbale price variance for Oral Conc in medical supplies
Unfavourable price and efficiency variance for Oral Conc in lab test.

Special follow-up has a unfavourable efficiency and unfavourable price variance in physician care
Unfavourable price and favourable efficiency variance for Special follow-up in nursing care cost.
No efficiency variance but favourbale price variance for Special follow-up in medical supplies
Unfavourable price and efficiency variance for Special follow-up in lab test.

Routine follow-up has a unfavourable efficiency and unfavourable price variance in physician care
Unfavourable price and favourable efficiency variance for Routine follow-up in nursing care cost.
No variance for medical supplies and lab test.
 in physician care cost.

medical supplies

riance in physician care cost.

ng care cost.
onc in medical supplies

e price variance in physician care cost.

al follow-up in nursing care cost.
ollow-up in medical supplies

le price variance in physician care cost.

ne follow-up in nursing care cost.
 Recommendations

Variances (Possibilities and Solutions)

After going through from each cost and visit type, it is clear that we have anticipated things quite well except for laboratory co
A major reason of not achieving standards is that we didn’t allocate our resources properly.
In few spots, we have over allocated avg mintues required per visit and in some points we were so tight.

We completely missed out on laboratory cost as well as on usage.

Medical supplies usage also needs to be reconsidered.
In physician care cost, we have no efficency variance which means that we are good at it but just need to reverse allocation be
We have price variance and it is unfavourable although it is not a big difference and it could be due to we missed some part of
we have unfavourable price and efficiency variance in nursing care cost. Again it could be due to one time cost or less experien
We have a favourable price variance for medical supplies and unfavourable usage variance. It could be due to a single patient
Lab test budgeting needs to be restructure. Although we have other things as well which needs our look but it was due to lab
And it could be due to like we have an inexperienced individual who is runing lab machines or it could be our lab machine is ou
To avoid those results in future, a management should closely have a look at each business process and identify which were th
They can also look for the other vendors for purchasing supplies who can give them a great discount.
identify those customers who took extra mintues for both nursing and physician and see the results after spreading them out.
identify those customers who took extra medical supplies and look for a reason.
 except for laboratory cost.

d to reverse allocation between visit types.

o we missed some part of cost when we are budgeting ot ir could be a one time cost.
time cost or less experienced nurse which took longer time then usual or it may be a one time cost.
e due to a single patient needs a more supplies per visit then usual or we may have an occasional or emergency patient which required m
ook but it was due to lab cost variance which stop us achieving target.
d be our lab machine is outdated, ot it needs a maintenance.
nd identify which were the areas on which they need to work on such as more experienced staff, updated machines or maintenance.

fter spreading them out.

ncy patient which required more then anticiapted

achines or maintenance.