[ORDER SOLUTION] Finance and Economics in Healthcare

Finance and Economics in Healthcare DeliveryDiscussion: Why Do Good Budgets Go BadInstructions:The following are budgeted and actual revenues and expenses for a hospital:Budgeted ActualRevenuesSurgical Volume2,300 2,600Gift Shop Revenues$18,000 $19,000Surgery Revenues $589,500 $852,750Parking Revenues $17,000 $19,000ExpensesPatients Days 26,000 25,000Pharmacy $119,000 $158,000Misc. Supplies$68,000 $795,600Fixed Overhead Costs $832,000 $890,000In preparation of your Discussion post submission, complete the following:1. Determine the total variance between the planned and actual budgets forSurgical Volume. Is the variance favorable or unfavorable?2. Determine the total variance between the planned and actual budgets forPatient Days. Is the variance favorable or unfavorable?3. Consider which variances are potentially due to change in volume and whichvariances are potentially due to change in rates or other factors