1 The Lean on Me Clinic (LoMc)provides counseling and stress management programs for overworked students LoMc's fixed costs are rent for the building (that includes utilities and maintenance) and the Director'ssalary These total $10,000per month Each counseling session uses 60 minutes of therapisttime and $2 in materials Each stress managementsession uses 15 minutes of trainer time and $3 in materials LoMc hires therapists and trainers on a freelance contract bases and does not provide them any benefits therapistsearn $40 per hour and stress management trainers are paid $25 per hour At the end of December 2016, LoMc's Director projected they would sell 1000 counseling sessions at $120 each and 10,000 stress managementsessions at $25 each in the upcoming year A)Complete The Lean on Me Clinic Annual Static (Projected) Budget for 2017 below (3 points) Revenue Total Cost Profit Revenue Breakdown Counseling Services Stress Management Services Cost Breakdown Fixed cost Counselor services Stress Management Trainer Services Supplies As 2017 came to a close, the director sawthat they actually provided 1000 counseling services 100 of those services were provided during their Holidays in July promotion offering the sessions for $75 each The remainder were sold at full price LoMc actually provided 12,500 stress reduction sessions 4,000 of these were sold during the July promotion at $15 each The remainder were sold at $25 Therapist and stress trainercontracted hourly rates remained the same throughout the year The spending on fixed costs were exactly as projected B)What is the LoMc's flexible budget amount for revenue, fixed cost, supplies, counselors, and stress trainers (5 points) What is LoMc's actual revenue, total cost, variable cost and profit (3 points) D)Examine the Revenue Variance What is the total Revenue Variance What is the Revenue Price Variance What is the Revenue Volume Variance (6 points) E)Examine the Cost variance What is the total Cost Variance Of the Variable Cost variance, what is the Volume variance and what is the Management variance (6 points) F)Interpret LoMc's budget variance results for 2018 What contributed most to the change in profit What recommendations would you makefor 2018 (8 points)

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1 The Lean on Me Clinic (LoMc)provides counseling and stress management programs for overworked students. LoMc's fixed costs are: rent for the building (that includes

The Lean on Me Clinic (LoMc)provides counseling and stress management programs for overworked students.
LoMc's fixed costs are: rent for the building (that includes utilities and maintenance); and the Director'ssalary.These total $10,000per month.
Each counseling session uses60 minutesof therapisttime and$2in materials. Each stress managementsession uses15minutesof trainer time and$3in materials.
LoMc hires therapists and trainers on a freelance contract bases and does not provide them any benefits.therapistsearn $40 per hour and stress management trainers are paid $25 per hour.
At the end of December 2016, LoMc's Director projected they would sell 1000 counseling sessions at $120 each and 10,000 stress managementsessions at $25 each in the upcoming year.
A)Complete The Lean on Me Clinic Annual Static (Projected) Budget for 2017 below (3 points)
Revenue
Total Cost
Profit
Revenue Breakdown
Counseling Services
Stress Management Services
Cost Breakdown
Fixed cost
Counselor services
Stress Management Trainer Services
Supplies
As 2017 came to a close, the director sawthat they actually provided 1000 counseling services.100 of those services were provided during their "Holidays in July" promotion offering the sessions for $75 each.The remainder were sold at full price.
LoMc actually provided 12,500 stress reduction sessions.4,000 of these were sold during the July promotion at $15 each.The remainder were sold at $25.
Therapist and stress trainercontracted hourly rates remained the same throughout the year. The spending on fixed costs were exactly as projected.
B)What is the LoMc's flexible budget amount for: revenue, fixed cost, supplies, counselors, and stress trainers? (5 points)
What is LoMc's actual revenue, total cost, variable cost and profit?(3 points)
D)Examine the Revenue Variance.What is the total Revenue Variance?What is the Revenue Price Variance?What is the Revenue Volume Variance?(6 points)
E)Examine the Cost variance.What is the total Cost Variance?Of the Variable Cost variance, what is the Volume variance and what is the Management variance?(6 points)
F)Interpret LoMc's budget variance results for 2018.What contributed most to the change in profit?What recommendations would you makefor 2018?(8 points)