Response to the following problem:
The administrator of Break-a-Leg Hospital is aware of the need to keep his costs down because he just negotiated a new capitated arrangement with a large insurance company. The following are selected planned and actual expenses for the previous month.
PLANNED ACTUAL PATIENT DAYS 24,000 23,000
PHARMACY $100,000 $140,000
MISC. SUPPLIES $56,000 $67,500
FIXED OVERHEAD COSTS $708,000 $780,000
Determine the total variance associated with the planned and actual expenses.