WGU D513 – Healthcare Financial Management Task 2 | Operating Budget & Variance Analysis Full-Length Professional Practice Exam with Solutions (2025 Edition) PDF

WGU D513 – Healthcare Financial Management Task 2: Operating Budget &
Variance Analysis Full-Length Professional Practice Exam with Solutions
(2025 Edition)



Section 1 – Multiple Choice & Calculation Questions (Q1–Q10)

Q1. A department has projected revenue of $1,200,000 and actual revenue of
$1,260,000. What is the revenue variance?

A) $50,000
B) $60,000
C) $40,000
D) $30,000

Answer: B) $60,000
Solution: 1,260,000 – 1,200,000 = 60,000 (Favorable variance)



Q2. Total projected expenses are $800,000. Actual expenses = $820,000. What is
the variance percentage?

A) 2.5%
B) 5%
C) 3%
D) 4%

Answer: 2.5% Unfavorable
Solution: (820,000 – 800,000) ÷ 800,000 × 100 = 2.5%



Q3. Calculate the net income variance if budgeted net income = $400,000 and
actual net income = $420,000.
Answer: $20,000 Favorable
Solution: 420,000 – 400,000 = 20,000

, Q4. A hospital has the following budget:

Expense Category Budget ($) Actual ($)
Salaries 500,000 520,000
Supplies 100,000 95,000
Utilities 50,000 52,000
Total Expenses 650,000 667,000
What is the total expense variance and is it favorable or unfavorable?

Answer: $17,000 Unfavorable
Solution: 667,000 – 650,000 = 17,000 → Expenses higher than budget →
Unfavorable



Q5. Operating margin = Net Income ÷ Revenue. Net income = $420,000, revenue
= $1,400,000.
Answer: 30%
Solution: 420,000 ÷ 1,400,000 = 0.3 = 30%



Q6. Break-even revenue if fixed costs = $500,000, variable cost per unit = $200,
selling price per unit = $500.
Answer: Break-even units = 500,000 ÷ (500 – 200) ≈ 1,667 units



Q7. A department’s actual net income is below budget by $15,000. Appropriate
corrective actions?
Answer:

 Reduce discretionary spending
 Analyze staffing levels and overtime
 Implement supply chain cost controls
 Review revenue cycle for billing errors