Running head: WEEK 4 ASSIGNMENT 1

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Antativos Green

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Staffing Budgets/FTEs/Variance Analysis Assignment
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March 30, 2019

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 WEEK 4 ASSIGNMENT 2

FTE/Variance Analysis

This document shows the administration of money in the order of a Western unit, a

nursing unit in St. Joseph's Hospital. 1 West is a 32-bed nursing unit designed to manage the

client. Linda Watson, the new partner manager, will examine all the data she will request to

organize the spending plan for the fiscal year for the West.

Section One: Calculate Full-Time Equivalents

The information that will be needed for Linda as she prepares for the fiscal year is the

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normal length of stay, the patient care, the recruiting network, the number of vacancies, the

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number of opportunities for employees in each dimension, the use and the expenses of office

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personnel and the salaries and expenses related to the required managerial staff (benefits,, Not
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fortunate deficit), educational requirements for staff, unprofitable time and any projected change

in employment (Chamberlain College of Nursing, 2017 ). The data provided on 1 West includes
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public services:
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Patient Data:
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Daily Census 30
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Unit Capacity 32
Average Hour Per Patient Day 8.8
Care Hours Total 96360
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Staff Data:
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Productive hours per employee per year 1780

Non-productive hours per employee per year 300
Hours total per employee per year 2080

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 WEEK 4 ASSIGNMENT 3

=Total care hours / hours productive/ FTE

= 96,360/ 1780

= 54.13

= 54 FTEs required

To identify total staff (RN, LVN and Medicare Assistants) that are expected from 1 West,

a 12-hour transportation unit, within 24 hours, the following information is required:

Staff/skill Mix:

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Skill % Mix No. of each staff skill in the period of 24

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hours
RNs
rs e 80% 80%*54 = 43.2 = 44 RNs
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LVNs 10% 10%*54 = 5.4 = 5 LVNs
Nurse Aids 10% 10%*54 = 5.4 = 5 NAs
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To determine the total number of employees according to the expected position of unit
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personnel, 1 West requires a break-even point with recruitment for each 12-hour period and half-
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day and a half at night.

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Staff Day Shift Night Shift

RNs 43.2/2 22 RNs 22 RNs
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= 21.6
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LVNs 5.4/2 3 LVNs 3 LVNs

=2.7
NAs 5.4/2 3 LVNs 3 LVNs
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= 2.7

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 WEEK 4 ASSIGNMENT 4

To determine the required individual movements within 24 hours, absolute hours and

separation are taken for the number of days the unit is open.

96,360 hours of full service / 365 days per year = 264 hours of study per day

264 hours of mind per day / 12 hours of spells = 22 turns in a 24-hour period

In order to assign the staff according to the type and shift:

Staff Day Shift Night Shift

RNs 9 9

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=80% * 22 = 17.6/2=8.8

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LVS 1 1

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=10% * 22 = 2.2/2=1.1
NAs 1 1

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=10% *22= 2.2/2-1.1
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To change personnel functions to FTE functions, you need FTE and general movements
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within a 24-hour time frame. Each movement (day and night) requires a day to the west of 2.45

feet per foot.

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54 total FTE /22 conversions for each 24-hour time period = 2.45

Staff Day Shift Night Shift Total FTE

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RNs 2.45*9= 22 2.45*9= 22 22 + 22=44

LVNs 2.45 * 1= 2.45 2.45 * 1= 2.45 2.45 + 2.45 =4.9=5
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NAs 2.45 * 1= 2.45 2.45 * 1= 2.45 2.45 + 2.45 =4.9=5

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Section Two: Variance Analysis

It is expected that this area will compare the first spending plan with the adaptive

spending plan and determine the difference in volume. In addition, comparing the spending plan

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 WEEK 4 ASSIGNMENT 5

is adaptable to the actual spending plan and determining the costs and the amount of the costs.

The 1 West data includes planned and actual numbers under:

Budgeted Price (Bpi) 40

Budgeted Quantity (BQi) 5 hours/care/patient
Budgeted Patient Days (BQo) 340 visits
Actual/hour nursing rate (APi) 45
Actual hours/ care/patient (AQi) 5.6
Actual Patients Days (AQo) 400 visits

She should really analyze the financial plan in the volatility report until she sets the actual budget

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variation table.

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Actual Budget Variance
Price/hour 45 40 5U

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Quantity 5.6 5 0.6 U
Patient days per visit rs e 400 340 60
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Total Costs 100,800 68,000 32,800 U
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Following are the calculations used for the original budget and actual budget costs:
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1. Original Budget’
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= Bqi * BQi * BQo

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= 40*5*340
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=$68,000
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2. Actual Budget
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= APi * AQi * AQo

= 45* 5.6* 400

= $100,800

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 WEEK 4 ASSIGNMENT 6

For Linda, the next step is to determine the adaptive spending plan, the amount she expected

to spend if she knew the actual number of patient days. To determine an adaptable spending plan,

BQo is changed from 340 (visits tolerant to spending) to 400 (visits from real patients).

1. Flexible Budget

= Bpi * BQi * AQo

= 40* 5* 400

= $80,000

Actual Flexible Budget

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Price/hour 45 40 40

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Quantity 5.6 5 5

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Patient days per visit 400 400 340
Total Costs 100,800 80,000 68,000

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Volume Variance = 80,000- 68,000
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= $12,000 U
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She can see that when it represents the additional number of patient days, she should

expect to represent an additional $ 12,000 in expenses. However, this leaves an additional $

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20,800 that is not found in the remaining parts.

Sandra is thinking of an expensive plan that is adaptable to the actual spending plan to
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determine the volatility of adaptive spending. The volatility of adaptive spending, as indicated

below, shows that Sandra must consider why the additional expense is different.
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Flexible Budget Variance = Actual Budget – Flexible Budget

= 100,800 – 80,000

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 WEEK 4 ASSIGNMENT 7

= $20,800 U

Next, Sandra combines volume fluctuations with adaptive spending to determine the

overall change. The overall difference is size, in addition to the volatility of adaptive spending.

= 12,000 + 20,800

= $32,800

She recognizes that there are two reasons for general volatility, changing value and

quantity difference. The value fluctuation is the rate of natural nursing every hour and the change

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in the amount is the number of hours that you are expected to consider (Chamberlain College of

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Nursing, 2017). To determine the quantum fluctuation, Sandra creates another subclass to

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compare the patient's actual viewing hours with the patient's prescribed observation hours.
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Subcategory (BP1 x AQi x Flexible Budget (Bpi x BQi x
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AQo) AQo)
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Price/hour 40 40
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Quantity 5.6 5
Patient days per visit 400 400
Total Costs 89,600 80,000
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Quantity Variance = 89,600 – 80,000

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= $9,600
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The variance of the amount to Sandra reveals that the difference of $ 9,600 was generated

by a large number of patients or by the new office staff at 1 West.

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She will determine the following variability of values, which will show if the change has

occurred due to the variation in nursing rates per hour using a subcategory.

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 WEEK 4 ASSIGNMENT 8

Actual Budget (APi x AQi x Subcategory (BPi x AQi x

AQo) AQo)
Price/hour 40 40
Quantity 5.6 5.6
Patient days per visit 400 400
Total Costs 100,800 89,600

Variance Price = 100,800 – 89,600

= $11,200

The variation of $ 11,200 is the impact of the highest hourly wages of the staff. This can

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be attributed to the use of the Organization's nursing staff to fill vacancies or to pay additional

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time in view of the high level of patients.

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She can point out how changes in costs and quantities constitute a variability of adaptive

spending.
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Flexible Budget Variance = Quantity Variance + Price Variance

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= 9,600 + 11,200
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= $20,800
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In summary, planning is an exceptional procedure that involves knowing exactly what is

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happening in your unit. For Sandra, the expanded opening rates, along with the use of the Office
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and the additional staff time of her unit, resulted in an adjusted spending difference of $ 20,800.

Linda had the ability to explain why she went beyond her financial plan and explained the
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reasons. It is important to gather information throughout the year for planning purposes, review

the financial plan and any fluctuations in expenses from one month to the next.

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