A dermatology clinic expects to contract with an HMO for an estimated 100,000 enrollees. The HMO expects 1 in 4 of its enrolled members to use the dermatology services per month.

At the end of the year, the dermatology clinic's business manager looked at her monthly figures and saw that the number of enrolled members had increased by 5% over the budgeted amount, and that 1 in 3 of the total HMO members had used the dermatology services per month.

Actual and budgeted statistics are presented below.The total variance is $70,000 and is unfavorable:

Budgeted Actual

Enrollees 100,000 105,000

Usage Rate 0.25 0.3333

Visits 25,000 35,000

Cost $250,000 $337,500

Cost Per Visit $10.00 $9.643

Question # 9

Determine the enrollment variance for the month.

Question # 10

Determine the utilization variance for the month.

Question # 11

Determine the efficiency variance for the month.