I was told 8.5 needs to be inlcuded by you guys (Chegg), and it was at the very top of the page.
Answer Problem 8.5 please. ****** I have included some other photos for questions or exhibits it may reference***** I only need the solutions to 8.5 though. On Problem 8.5, the best way to think about laying this out is that you want to end up with four budgets side by side. First., the static budget that is given to you in exhibit 8.3 in the chapter, and then the actual, realized results that are given in the problem. The real work here is to create two flexible budgets - one enrollment and one enrollment/utilization. You don't need anything from prob. 8.4 to do these.
8.5 Instead of the results in Problem 8 consider the results reported Carroll Clinic: New 2015 Results 31,000 members 372,000 Actual utilization per 0.11613 Number of C. Total actual visits 28 per visit 952,000 B. Capitated lives 2.75 PMPM x372,000 actual member months $1,023,000 C Total actual revenues $1,975,000 (continued from previous pogeu Costs Variable Costs A. S1.242,000 (6,000 hours at S27/houry 126,000 (90,000 units at SI 40 unit Total variable costs $1,368,000 $17.72 (si 368,000 77.200) Variable cost per visit B. Fixed Costs Overhead, plant and equipment 525,000 C. Total actual costs SI 3,000 IV Profit and Lao Statement: 952,000 1,023,000 Total S1,975,000 Variable: FFS 602,487 Capitated 765,513 $1,368,000 Contribution margin 607,000 Fixed costs 525,000 Actual profit 82,000 Refer to Problem 8.4. Assume the results reported in that problem hold except that a difference existed among budgeted (static) enrollment and realized enrollment. The corrected results are presented above. a. Construct Carroll's flexible budgets for 2015. (Hint Because of a change in enrollment, creating three flexible budgets is necessary See the note to Exhibit 8.7.) b. What are the profit variance, revenue variance, and cost variance? c. Focus on the revenue side. What is the volume variance? The price variance? Break the volume variance into enrollment and utilization components. How does your answer here differ from your corresponding answer to Problem 8.4? d. Now consider the cost side. What are the volume and management variances? Break down the management variance into labor, supplies, and fixed costs variances. e. Interpret your results. In particular, focus on the differences between the variance analysis here and the one in Problem 8.4 8.5 Instead of the results in Problem 8 consider the results reported Carroll Clinic: New 2015 Results 31,000 members 372,000 Actual utilization per 0.11613 Number of C. Total actual visits 28 per visit 952,000 B. Capitated lives 2.75 PMPM x372,000 actual member months $1,023,000 C Total actual revenues $1,975,000 (continued from previous pogeu Costs Variable Costs A. S1.242,000 (6,000 hours at S27/houry 126,000 (90,000 units at SI 40 unit Total variable costs $1,368,000 $17.72 (si 368,000 77.200) Variable cost per visit B. Fixed Costs Overhead, plant and equipment 525,000 C. Total actual costs SI 3,000 IV Profit and Lao Statement: 952,000 1,023,000 Total S1,975,000 Variable: FFS 602,487 Capitated 765,513 $1,368,000 Contribution margin 607,000 Fixed costs 525,000 Actual profit 82,000 Refer to Problem 8.4. Assume the results reported in that problem hold except that a difference existed among budgeted (static) enrollment and realized enrollment. The corrected results are presented above. a. Construct Carroll's flexible budgets for 2015. (Hint Because of a change in enrollment, creating three flexible budgets is necessary See the note to Exhibit 8.7.) b. What are the profit variance, revenue variance, and cost variance? c. Focus on the revenue side. What is the volume variance? The price variance? Break the volume variance into enrollment and utilization components. How does your answer here differ from your corresponding answer to Problem 8.4? d. Now consider the cost side. What are the volume and management variances? Break down the management variance into labor, supplies, and fixed costs variances. e. Interpret your results. In particular, focus on the differences between the variance analysis here and the one in Problem 8.4
