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Budget assumptions for this exercise include both inpatient and outpatient revenue and expense. Assumptions are as follows: As to the initial budget: The budget anticipated 30,000 inpatient days this year at an average of $650 revenue per day.
As to the actual results:
• Further assume that, due to the heroic efforts of the Chief Financial Officer, the actual inpatient expenses will amount to $11,600,000 and the actual outpatient expenses will amount to $4,000,000 Required 1. Set up three worksheets that follow the format of those in Example 15A. However, in each of your worksheets make two lines for revenue; label one as Revenue-Inpatient and the other Revenue-Outpatient. Add a Revenue Subtotal line. Likewise, make two lines for expense; label one as Expense-Inpatient and the other Expense-Outpatient. Add an Expense Subtotal line. 2. Using the new assumptions, complete the first worksheet for "As Budgeted." 3. Using the new assumptions, complete the second worksheet for "Actual." 4. Using the new assumptions, complete the third worksheet for "Static Budget Variance."
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