Question

Reviewing the Budget

Answer the following questions.
8. Part of preparing a medical office budget is to regularly compare your practice’s actual finances with your budget. Assess the information in the table below:

a. Determine the variance for each month.
b. For each month, was the practice “Underbudget” or “Overbudget”?

Month Budget Actual Variance Underbudget or Overbudget
January 2,355,872 1,790,929 Type answer here
Type answer here

February 2,654,031 2,827,606 Type answer here
Type answer here

March 2,239,980 2,924,180 Type answer here
Type answer here

April 3,350,156 3,867,270 Type answer here
Type answer here

May 2,404,480 2,413,107 Type answer here
Type answer here

June 2,307,708 2,220,000 Type answer here
Type answer here


________________________________________

Answer 1

564943

2355872-1790929

Answer 2

For each month we calculate the variance by finding the difference between the Actual numbers and Budget numbers.

Then we indicate if the practice was "Overbudget" or "Underbudget".

If the actual numbers are less than the budget numbers, the budget is we say that the budget is under budget.

If the actual numbers are more than the budget numbers, the budget is we say that the budget is over budget.

Month Budget Actual Variance Under/ over

(Actual -Budget) Budget

January 23,55,872 17,90,929 -5,64,943 Under Budget

February 26,54,031 28,27,606 1,73,575 Over Budget

March 22,39,980 29,24,180 6,84,200 Over Budget