Tamica Bradford
HCA-240
9/1/13
Tirizia York
Variance Analysis

A variance report involves a way for business executives and department managers to approximate their company’s performance. By examining one set of figures against another, and comparing the planned amount to an actual amount. In the proceeding paragraphs, I will explain how to give a detailed variance report analysis to the vice president of the hospital where I work at, explaining the factors that led up to my salaries for the previous month being higher than the supply figures on my budget reports.
It’s the beginning of the month and as I sit at my desk reviewing my previous month’s budget report, I see where my budgeted salaries in my department alone are higher than the supply cost for the previous month. Then while sitting there it comes to me that I have a variance report due to the vice president of my department next week, where will have to give an explanation as to how for the month of June my salaries are higher than my supplies. I see this is going to be a long day so off to the break room to grab a cup of water, and my coffee close my office door and turn on some soft music and” let’s get started”. The first thing on the agenda is to is to run an analysis report that shows the number of employees worked and production along with what supplies were used and the costs of the supplies used. After importing the data on my excel spreadsheet and reviewing the items in red are representing variances with a plus or minus at a rate of plus or minus 10% or where a significant increase had occurred. Now I must identify what has caused these changes and give an explanation.
In the explanation the items listed on the spread sheet would be “Actual Variance”, and the other would be my notes, along with my prior year’s calculations. This is important due to the fact a positive variance yields