$8\mathrm{.}4.$Refer to Carroll Clinic$$s $2020$ operating budget contained in exhibit $8\mathrm{.}3.$ Instead of the actual results reported in exhibit $8\mathrm{.}4,$ assume the results reported below: Carroll Clinic: New $2020$ Results I. Volume: A$.$ FFS $34,000$ visits B$.$ Capitated lives $30,000$ members Number of member$-$months $360,000$ Actual utilization per member$-$month $0\mathrm{.}12$ Number of visits $43,200$ visits C$.$ Total actual visits $77,200$ visits II$.$ Revenues: A$.$ FFS $ $28$ per visit $\backslash$times $34,000$ actual visits $ $952,000$ B$.$ Capitated lives $ $2\mathrm{.}75$ PMPM $\backslash$times $360,000$ actual member$-$months $ $990,000$ C$.$ Total actual revenues $$1,942,000$ III. Costs: A$.$ Variable Costs: Labor $$1,242,000(46,000$ hours at $$27/$hour$)$ Supplies $126,000(90,000$ units at $$1\mathrm{.}40/$unit$)$ Total variable costs $$1,368,000$ Variable cost per visit $ $17\mathrm{.}72($$$1,368,000-$: $77,200)$ B$.$ Fixed Costs: Overhead, plant, and equipment $ $525,000$ C$.$ Total actual costs $$1,893,000$ IV$.$ Profit and Loss Statement: Revenues: FFS $ $952,000$ Capitated $990,000$ Total $$1,975,000$ Costs: Variable: FFS $ $602,487$ Capitated $765,513$ Total $$1,368,000$ Contribution margin $ $574,000$ Fixed costs $525,000$ Actual profit $ $49,000$ Construct Carroll$$s flexible budget for $2020.$ What are the profit variance, revenue variance, and cost variance? Consider the revenue variance. What is the component volume variance? The price variance? Break down the cost variance into volume and management components. Break down the management variance into labor, supplies, and fixed costs variances. Break down the labor and supplies variances into rate$/$price and efficiency$/$usage components. Interpret your results. In particular, focus on the differences between the variance analysis here and the Carroll Clinic illustration presented in the chapter.