(Do not copy from Chegg)

Chelsea Clinic projected the following budget information for 2015:

Total FES Visit Volume	90,000 visits
Paver Mix:
Blue Cross	40%
Highmark	60%
Reimbursement Bata:
Blue Cross	$25 per visit
Highmark	$20 per visit
Variable Costs
Resource Inputs:
Labor	48,000 total hours
Supplies	100,000 total units
Resource Input Prices:
Labor	$25.00 per hour
Supplies	$1.50 per unit
Fixed Costs (overhead, plant, and equipment)	$500,000

a. Construct Chelsea Clinic's operating budget for 2015. (Do not copy from Chegg)

b. Discuss how each key budget assumption might result in a budget variance, and name the variance that would be used to examine results associated with each assumption. Please provide some specific detail related to the given standards of labor cost per hour or supplies cost per unit and how differences in the assumptions to that of reality would create variances.

(Do not copy from Chegg)