Question
Detailed variance analysis. A dermatology clinic expects to contract with an HMO for an estimated 100,000 enrolees. The HMO expects one in four of its
Detailed variance analysis. A dermatology clinic expects to contract with an HMO for an estimated 100,000 enrolees. The HMO expects one in four of its enrolled members to use the dermatology services per month. At the end of the year, the dermatology clinic's business manager looker at her monthly figures and saw tha the number if enroleed members had increased by 5 percent over the budgeted amount and that one in three of the HMO members had used the dermatology services per month. Net monthly revenues of the dermatology clinic were budgeted at 360,000 but were actually 550,000. Monthly expenses for the clinic were budgeted at 300,000 but were actually 370,000. a. Prepare monthly revenue volume variance report for the clinic. b. Prepare monthly revenue rate variance report for the clinic. c. Prepare monthly expense volume variance report for the clinic. d. Prepare monthly expense cost variance report for the clinic.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started