Case Study 4 – Budget and Variances

Sue Nugyet, the nurse manager for Six North, does not enjoy reviewing budgetary informationand puts off her review until her monthly report is due to her director. The following report is apartial revenue and expense report for her cost center.
Cost Center: Six North Report for May 2005ActualThis Month’s BudgetVarianceAccount Number and DescriptionActualYear to Date BudgetVariance300,000350,00050,000300 Revenue005 Routine3.5 million3 million(500,000)75,00070,000(5000)400 Salary010 Salaries—Regular750,000700,000(50,000)50004500(500)500 Supply Expenses015 Medical Supplies40,00035,000(5000)
Case Study QuestionsIs Nurse Nugyet over or under budget on each of the items? What additional information would be helpful when explaining variances?