the coding section in the HIM department shows its first-quarter budget analysis as having an expected cost of operation of $62,000. However, the actual cost of operation was $76,000. calculate the budget variance.
100(14,000 / 62,000) = ______%
The coding section in the HIM department shows its first-quarter budget analysis as having an expected cost of operation of $62,000. However, the actual cost of operation was $76,000.
What is the budget variance?
To calculate the budget variance, you can use the formula:
Budget Variance = Actual Cost of Operation - Expected Cost of Operation
Substituting the given values, we have:
Budget Variance = $76,000 - $62,000
Budget Variance = $14,000
Therefore, the budget variance for the coding section in the HIM department is $14,000.
To calculate the budget variance, you need to find the difference between the expected cost of operation and the actual cost of operation.
The formula for budget variance is:
Budget Variance = Actual Cost - Expected Cost
In this case, the actual cost of operation is $76,000, and the expected cost of operation is $62,000.
Budget Variance = $76,000 - $62,000
Budget Variance = $14,000
Therefore, the budget variance for the coding section in the HIM department is $14,000.