Healthcare Finance Accounting Question - Appomattox Nursing Home _Budget and Variances

Question # 00004255 Posted By: ACCOUNTS_GURU Updated on: 11/29/2013 08:16 AM Due on: 12/31/2013
Subject Accounting Topic Accounting Tutorials:
Dot Image

The administrator of Appomattox Nursing Home is very aware of needing to keep his cost down since he just negotiated a new arrangement with a large insurance company that will pay him a fixed amount per patient day. Listed below are budgeted and actual expenses for the previous month.

Actual patient days were 30,000 compared to budgeted patient days of 24,000.

Budgeted Costs @ 24,000 Patient Days

Budgeted Cost Per Unit

Actual Costs @ 30,000 Patient Days

Pharmacy Costs Variable




Misc Supplies Costs Variable




Fixed Overhead Costs








a. Determine the total variance associated with the planned and actual expenses.

b. Prepare a flexible budget of expense at 30,000 patient days.

c. Determine the “Spending Variance” which is defined as Actual costs less costs budgeted at actual volume.

Dot Image
Tutorials for this Question
  1. Tutorial # 00004052 Posted By: ACCOUNTS_GURU Posted on: 11/29/2013 08:17 AM
    Puchased By: 2
    Tutorial Preview
    Fixed Overhead Costs $708,000 $29.50 $780,000 Total $864,0000 $36.00 $987,500 a. ...
    Appomattox_Nursing_Home__Budget_and_Variances.xlsx (12.58 KB)

Great! We have found the solution of this question!

Whatsapp Lisa