Exercise C - Please answer question 1 & 2 only

Newark University Health Center (MNC) Variance Report, 2nd Quarter 2018 2nd Quarter 2018 Actual Item Budget Variance 4 MD & NPs on staff 5 Total encounters 6 Revenue: 7 ACO revenue 8 Grant fundin 9 Private collections 10 Donations 11 Total Revenue 12 Expenses: 13 Cost per patient encounter 14 Personnel expense NPs 15 Benefits @ 30% 16 Clinic Manager 0.5 FTE 17 Clerical 0.8 FTE x 2 18 Total 19 Medical supplies 20 21 Depreciation 22 Capital Expenses 23 Overhead 24 Total non-personnel expense 25 Total health center expense 26 Net Profit or Loss (P&L 27 28 Instructions: 29 1. Determine the total variance between the planned and actual budgets. 30 2. Calculate the amount of unexplained variance 31 3. Prepare a flexible budget estimate for variable costs. Compare budget, flexible budget, and acutal (show related volume) 32 4. Determine what variance is due to change in volume and what variance is due to change in rates. 33 5. Determine the volume variance and rate variance based on per unit rates. 34 980 997 $112,500 $112,500 $12,500 $12,500 $3,102 $5,489 $3,750 $5,000 $134 500 $52,500 $15,750$15,750 $7,500 $10,000 $10,000 85,750 $25,000 $33,563 $1,417 S974 $9,743 $2,500 $128 $7,500 onnel expense $85.750 S $1,500 $1,000 $10,000 $2,500 Non-medical supplies