1. Calculate and prepare the static budget, flexible budget, and actual results based upon the following information:

	Budget	Actual
Volume Assumptions
FFS Visit Volume	50,000 visits	72,000 visits
Payer Mix:
Blue Cross	30%	30%
Highmark	70%	70%
Reimbursement Rates:
Blue Cross	$45 per visit	$38 per visit
Highmark	$40 per visit	$48 per visit
Variable Costs
Resource Inputs:
Labor	28,000 total hours	40,000 total hours
Supplies	80,000 total units	120,000 total units
Resource Input Prices:	$35.00 per hour	$38.00 per hour
Labor
Supplies	$2,50 per unit	$3.50 per unit
Fixed Costs	$500,000	$500,000

1. Break the management variance into labor, supplies, and fixed cost variances.
2. Break down the labor and supplies variances into rate/price and efficiency/usage components.