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The following are the nursing department labor costs for a home health agency:
Actual Budget Variance
$22,815 $17,250 $5,565 U
Budgeted visits = 1,250
Actual visits = 1,500
Budgeted nurse hours per visit = 0.6
Actual nurse hours per visit = 0.65
Budgeted nurse pay rate = $23.00/hour
Actual nurse pay rate = $23.40/hour
Calculate the price, quantity, and volume variances. Hint: They should add up to the total variance of $5,565.
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