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Posted on Jul 27, 2024

Er Chapter 61 Planning and Budgeting 173 Volume (Number of visits) Payer A Payer B Total ET 6.2 Carroll Clinic 20 Operating Budo 9.000 12.000

Er Chapter 61 Planning and Budgeting 173 Volume (Number of visits) Payer A Payer B Total ET 6.2 Carroll Clinic 20 Operating Budo 9.000 12.000 21.000 I. Reimbursement (Per Visit Payer Payer B 5 $ 100 90 888 5 315.000 By pro m. Costs Variable Costs Supplies Fixed Costs Labor Overhead Total $1,035.000 500.000 51.835.000 you ag autom link to messa My To IV. Forecasted Pal Statement Revenues Payer A Payer Total revenues Variable costs Fixed costs Total costs Profit $ 900.000 1.000.000 51.000 $315.000 L335.000 Suasa.000 5 110.000 Loose! 7th Editior Chapter 6: Planning and Budgeting 175 Simple Budget Variance Actual Results ExT 6.3 Carroll Clinic: 2012 Simple Budget Variance Analysis Dollerar Visit Volume (Number of Visits) Payer A 9.000 Payer B 12.000 Total 21,000 10.000 11.500 21.500 1,000 (500) 500 (4.2) 24 IL Reimbursement (per Visit) Payer A $100 Payer B $90 $105 585 55 (55) 5.0% HE (56) Costs Variable Costs: Supplies $315.000 $ 320,000 $ 5.000 (1.6%) Fixed Costs: Labor Overhead Total $1.035.000 500,000 $1.535.000 $1.050.000 550.000 $1.600.000 S 35.000 (50.000 $65.000! (10.) IV. Forecasted P&L Statement Revenues: Payer A 5.900,000 Payer B 1,080,000 Total revenues $1.950,000 Variable costs $ 315.000 Fixed costs 1.535.000 Total costs $1.850.000 Profit 130.000 $1.050.000 977.500 $2,037.500 $ 320,000 L600,000 $1.920,000 1978.99 $150,000 (103.500) $ 47.500 S 5.000) (65.000) $ 70,000) 15 23.500 36.7% (9. 2.4 06 6-40 As explained earlier, variance analysis involves comparing two amounts, with the variance being the difference berween the values. For comple, if at the beginning of the year, a hospital expected to make a profit of $2 million but actual profit was $2.2 million, the variance would be a positive $0.2 million, or $200.000 The budprted value, in this case $2 million of prohis, I chen called the standen because that is the profit goal of the hospital (the standard wo be reached) as expresando 6.4 Again refer to Carroll Clinic's 2012 operating budget contained in Exhibit 6.2. Instead of the actual results reported in Exhibit 63 or listed in Problem 63, assume these results Volume (Number of Visits) Payer 8,500 Payer 11000 Total 19.500 Payer A Reimbursement $90 (per Vist) Payer $80 in Costs Variable Costs Supplies $320.000 Fored Costs Labor $1,050,000 Overhead S550,000 Total $1.600.000 IV. Forecasted P&L Statement Profit $275,000 Revenues Payer A 5765,000 Payer $680,000 Total Revenues 51.645,000 Variable Costs $320,000 Fred Costs $1,600,000 Total $1.920,000 a What are the profit, revenue, and cost variances based on the simple (Exhibit 6.2) budget? b. Construct Carroll's flexible budget for 2012 c. What are the profit, revenue, and cost variances based on the flexible budget? d. Interpret your results. In particular, focus on the differences between the variance analysis here and the Carroll Clinic illustration presented in the chapter and in problem 6.3. Problem 6.3 (Useful for question "D" L Volume Payer A (Number of 11,000 Visits) Payer B 12,000 Total 23,000 IL Payer A Reimbursement $95 (per Visit) Payer B $95 Ill. Costs Variable Costs: Supplies $350.000 Fixed Costs Labor $1,000,000 Overhead $500,000 Total $1,500,000 1. Forecasted PL Statement Profit $335.000 Revenues Variable Payer A Costs $1.045,000 $350.000 Payer Fixed Cos 51.140.000 $1.500,000 Total Total Revenues 51,850,000 52,165.000 Please show work. Thank you! Er Chapter 61 Planning and Budgeting 173 Volume (Number of visits) Payer A Payer B Total ET 6.2 Carroll Clinic 20 Operating Budo 9.000 12.000 21.000 I. Reimbursement (Per Visit Payer Payer B 5 $ 100 90 888 5 315.000 By pro m. Costs Variable Costs Supplies Fixed Costs Labor Overhead Total $1,035.000 500.000 51.835.000 you ag autom link to messa My To IV. Forecasted Pal Statement Revenues Payer A Payer Total revenues Variable costs Fixed costs Total costs Profit $ 900.000 1.000.000 51.000 $315.000 L335.000 Suasa.000 5 110.000 Loose! 7th Editior Chapter 6: Planning and Budgeting 175 Simple Budget Variance Actual Results ExT 6.3 Carroll Clinic: 2012 Simple Budget Variance Analysis Dollerar Visit Volume (Number of Visits) Payer A 9.000 Payer B 12.000 Total 21,000 10.000 11.500 21.500 1,000 (500) 500 (4.2) 24 IL Reimbursement (per Visit) Payer A $100 Payer B $90 $105 585 55 (55) 5.0% HE (56) Costs Variable Costs: Supplies $315.000 $ 320,000 $ 5.000 (1.6%) Fixed Costs: Labor Overhead Total $1.035.000 500,000 $1.535.000 $1.050.000 550.000 $1.600.000 S 35.000 (50.000 $65.000! (10.) IV. Forecasted P&L Statement Revenues: Payer A 5.900,000 Payer B 1,080,000 Total revenues $1.950,000 Variable costs $ 315.000 Fixed costs 1.535.000 Total costs $1.850.000 Profit 130.000 $1.050.000 977.500 $2,037.500 $ 320,000 L600,000 $1.920,000 1978.99 $150,000 (103.500) $ 47.500 S 5.000) (65.000) $ 70,000) 15 23.500 36.7% (9. 2.4 06 6-40 As explained earlier, variance analysis involves comparing two amounts, with the variance being the difference berween the values. For comple, if at the beginning of the year, a hospital expected to make a profit of $2 million but actual profit was $2.2 million, the variance would be a positive $0.2 million, or $200.000 The budprted value, in this case $2 million of prohis, I chen called the standen because that is the profit goal of the hospital (the standard wo be reached) as expresando 6.4 Again refer to Carroll Clinic's 2012 operating budget contained in Exhibit 6.2. Instead of the actual results reported in Exhibit 63 or listed in Problem 63, assume these results Volume (Number of Visits) Payer 8,500 Payer 11000 Total 19.500 Payer A Reimbursement $90 (per Vist) Payer $80 in Costs Variable Costs Supplies $320.000 Fored Costs Labor $1,050,000 Overhead S550,000 Total $1.600.000 IV. Forecasted P&L Statement Profit $275,000 Revenues Payer A 5765,000 Payer $680,000 Total Revenues 51.645,000 Variable Costs $320,000 Fred Costs $1,600,000 Total $1.920,000 a What are the profit, revenue, and cost variances based on the simple (Exhibit 6.2) budget? b. Construct Carroll's flexible budget for 2012 c. What are the profit, revenue, and cost variances based on the flexible budget? d. Interpret your results. In particular, focus on the differences between the variance analysis here and the Carroll Clinic illustration presented in the chapter and in problem 6.3. Problem 6.3 (Useful for question "D" L Volume Payer A (Number of 11,000 Visits) Payer B 12,000 Total 23,000 IL Payer A Reimbursement $95 (per Visit) Payer B $95 Ill. Costs Variable Costs: Supplies $350.000 Fixed Costs Labor $1,000,000 Overhead $500,000 Total $1,500,000 1. Forecasted PL Statement Profit $335.000 Revenues Variable Payer A Costs $1.045,000 $350.000 Payer Fixed Cos 51.140.000 $1.500,000 Total Total Revenues 51,850,000 52,165.000 Please show work. Thank you