Review the Budget Comparison Statement for the Food Service Department in a Long-Term Care Home. 1. For each cost center variance state if the variance has a positive or negative impact on the budget and suggest possible reasons for the variance\

2. As a NM, what would your recommendations be if these variances were being used to forecast next years budgetary needs. Remember without valid reasons you cannot just increase a cost center. Think about things like: Who funds that cost center; where will additional monies come from?
3. Justify your recommendations.

Description Total Budget YTD Budget YTD Actual Variance

Wages 454,292 208,974 211,209 (2235)
Benefits 124,930 57,468 60,806 (3,338)
Development 5,000 2,500 - 2,500
Purchased Services 1,000 500 302 198
Supplies 22,000 11,000 11,232 (232)
Raw Food 191,361 95,681 103,250 (7,569)