NR 533 Week 4 Assignment Staffing Budgets-FTEs-Variance Analysis Assignment (2 versions)

4. Analyze all the factors that made the differences and why the variances occurred. How can this variance be justified? The unit experienced the significant efficiency variance because either it received more patients than budgeted or that the average length of stay increased which resulted in more patient days than projected. The quantity variance on the other hand was due to an increase in the hours of care per patient day. This means that the patients in the unit during the period required more attention than previously estimated. Although the increased activity contributed to the cost variance, the major reason for this variance is the increase in average hourly pay from $35 to $45. This could be due to new regulations regarding remuneration of nurses, or an unbudgeted pay hike for the staff by the healthcare facility. 5. In what ways might these variances inform the current or future budgets? According to,,,,helps an organization highlight issues, trends, opportunities or even threats to success. It also enables management to spot relationships between various budgetary variables. This information helps a business to better construct its future budgets. Variance analysis enables analysts to identify causes of changes whether positive or negative. In this case, the variance information will enable the organization to adjust its future budget to reflect the new changes in HPPD, average hourly pay as well as the average occupancy rate.