$18 per visit Medicare Variable Costs - Resource Inputs: Labor Supplies Variable Costs - Input Prices: Labor Supplies Fixed Costs (overhead, plant, and equipment 50,000 total hours 150,000 total units $28 per hour $1.50 per unit $500,000 Fixable budget for 100000 a. Construct Tallahassee Clinie's flexible budget for 2020. Static budget for 90000 visits Fixable budget per unit Sales 4050000 $45 Direct Material 150000 1.5 per unit Direct Labor 100000 25 per hour Variable Overheads Total varible cost 1150000 Contribution 1100000 18.5 Fixed cost 500000 5.56 Net profit 600000 12.94 26.5 b. Calculate the revenue variance 550000 c. Calculate the cost variance 150000 d. Calculate the profit variance 129400 e. Focus on the revenue side. What is the volume variance? 1. Focus on the revenue side. What is the price variance? Focus on the cost side. What is the volume variance? I h. Focus on the cost side. What is the management variance? Focus MacBook Air Private Insurance # of visits Ratio 36000 40% Medicare Total 54000 90000 60% $ $ 1,080,000.00 1.980,000.00 $20 per visit Revenue A 900,000.00 $ $25 per visit Variable Costs Labor hours ratio 48000 19200 28800 40% 60% $ 480,000.00 720,000.00 $ 1,200,000.00 Labor cost @25 per hour b) $ 100000 Supplies unit Ratio 40000 60000 40% 60% $ 1,000,000.00 1,500,000.00 $ 2,500,000.00 Labor cost @1.5 per unit $ $ 500,000.00 $ Fixed cost Ratio $ 200,000.00 30,000.00 40% 60% $ 1.220.000,00 1560,000.00 $ 2.780,000.00 Profit A.B.CD $ 1. Labout hours are divided in the ratio of visits 2 Units supplied are divided in the ratio of visits 3. Fixed cost ha been allocated in the ratio of visits, Problem 2 $18 per visit Medicare Variable Costs - Resource Inputs: Labor Supplies Variable Costs - Input Prices: Labor Supplies Fixed Costs (overhead, plant, and equipment 50,000 total hours 150,000 total units $28 per hour $1.50 per unit $500,000 Fixable budget for 100000 a. Construct Tallahassee Clinie's flexible budget for 2020. Static budget for 90000 visits Fixable budget per unit Sales 4050000 $45 Direct Material 150000 1.5 per unit Direct Labor 100000 25 per hour Variable Overheads Total varible cost 1150000 Contribution 1100000 18.5 Fixed cost 500000 5.56 Net profit 600000 12.94 26.5 b. Calculate the revenue variance 550000 c. Calculate the cost variance 150000 d. Calculate the profit variance 129400 e. Focus on the revenue side. What is the volume variance? 1. Focus on the revenue side. What is the price variance? Focus on the cost side. What is the volume variance? I h. Focus on the cost side. What is the management variance? Focus MacBook Air Private Insurance # of visits Ratio 36000 40% Medicare Total 54000 90000 60% $ $ 1,080,000.00 1.980,000.00 $20 per visit Revenue A 900,000.00 $ $25 per visit Variable Costs Labor hours ratio 48000 19200 28800 40% 60% $ 480,000.00 720,000.00 $ 1,200,000.00 Labor cost @25 per hour b) $ 100000 Supplies unit Ratio 40000 60000 40% 60% $ 1,000,000.00 1,500,000.00 $ 2,500,000.00 Labor cost @1.5 per unit $ $ 500,000.00 $ Fixed cost Ratio $ 200,000.00 30,000.00 40% 60% $ 1.220.000,00 1560,000.00 $ 2.780,000.00 Profit A.B.CD $ 1. Labout hours are divided in the ratio of visits 2 Units supplied are divided in the ratio of visits 3. Fixed cost ha been allocated in the ratio of visits, Problem 2
