ces the surgery ter to Carroll Clinic's 2020 operating budget contained in 8.3. Instead of the actual results reported in exhibit 8.4. me the results reported below: Carroll Clinic: New 2020 Results 1 34,000 30,000 1. FRS visits members Capitated lives Number of 360,000 member months Actual utilization per member month Number of visits C Total actual visits 0.12 43,200 77,200 visits VISIES I RAMAC 1. FES per visit 28 x 34.000 actual visits $ 952,000 2.75 PMPM X 360,000 actual member-months $ 990,000 C. Total actual revenues $1,942,000 B. Capitated lives III. Casts: A. Variable Costs: Labor $1,242,000 (46,000 hours at $27/hour) Supplies 126,000 (90,000 units at $1.40/unit) Total variable costs $1,368,000 Variable cost per visits 17.72 ($1,368,000 = 77,200) B. Fixed Costs: Overhead, plant, and equipment $ 525,000 $1,893,000 C. Total actual costs (continued) Gapensar Nealthcare Finance 11.7 IV. Profit and Laer Statement: Revenues: FRS Capitated $ 952,000 990,000 si975, 1,942,000 Total Costs: Variable: FES Capitated Total 11 $ 602,487 765,513 $1,368,000 Contribution margin $ 574,000 525,000 Fixed costs Actual profit $ 49,000 a. Construct Carroll's flexible budget for 2020. b. What are the profit variance, revenue variance, and cost variate variance? The price variance? d. Break down the cost variance into volume and management components. e. Break down the management variance into labor, supplies, and fixed costs variances. f. Break down the labor and supplies variances into rate/price and c. Consider the revenue variance. What is the component volume efficiency/usage components. g. Interpret your results. In particular, focus on the differences between the variance analysis here and the Carroll Clinic illustration presented in the chapter. 8.5 ces the surgery ter to Carroll Clinic's 2020 operating budget contained in 8.3. Instead of the actual results reported in exhibit 8.4. me the results reported below: Carroll Clinic: New 2020 Results 1 34,000 30,000 1. FRS visits members Capitated lives Number of 360,000 member months Actual utilization per member month Number of visits C Total actual visits 0.12 43,200 77,200 visits VISIES I RAMAC 1. FES per visit 28 x 34.000 actual visits $ 952,000 2.75 PMPM X 360,000 actual member-months $ 990,000 C. Total actual revenues $1,942,000 B. Capitated lives III. Casts: A. Variable Costs: Labor $1,242,000 (46,000 hours at $27/hour) Supplies 126,000 (90,000 units at $1.40/unit) Total variable costs $1,368,000 Variable cost per visits 17.72 ($1,368,000 = 77,200) B. Fixed Costs: Overhead, plant, and equipment $ 525,000 $1,893,000 C. Total actual costs (continued) Gapensar Nealthcare Finance 11.7 IV. Profit and Laer Statement: Revenues: FRS Capitated $ 952,000 990,000 si975, 1,942,000 Total Costs: Variable: FES Capitated Total 11 $ 602,487 765,513 $1,368,000 Contribution margin $ 574,000 525,000 Fixed costs Actual profit $ 49,000 a. Construct Carroll's flexible budget for 2020. b. What are the profit variance, revenue variance, and cost variate variance? The price variance? d. Break down the cost variance into volume and management components. e. Break down the management variance into labor, supplies, and fixed costs variances. f. Break down the labor and supplies variances into rate/price and c. Consider the revenue variance. What is the component volume efficiency/usage components. g. Interpret your results. In particular, focus on the differences between the variance analysis here and the Carroll Clinic illustration presented in the chapter. 8.5
