Projected Budget for 2020:

Actual results for 2020:

Total FFS Visit Volume	100,000 visits
Payer Mix: Blue Cross
Blue Cross	40%
Highmark	60%
Reimbursement Rates:
Blue Cross	$28 per visit
Highmark	$18 per visit
Variable Costs
Resource Inputs:
Labor	50,000 total hours
Supplies	150,000 total units
Resource Input Prices:
Labor	$28 per hour
Supplies	$1.50 per unit
Fixed Costs (overhead, plant and equipment)	500,000

Please help, questions that need answered based on this data:

	Static		Actual	% change
Total Visits	90,000		100,000
Reimbursement Rates
Blue Cross	25		$28
Highmark	20		$18
Variable Costs				Flexed Units
Labor (hours)	48,000		50,000
Supplies (units)	100,000		150,000
Labor(price)	$25		$28
Supplies (cost)	$1.50		$1.50
Fixed Costs	$500,000		$500,000

8.6. Chelsea Clinic projected the following budget information for 2020 90,000 visits 40% 60% $25 per visit $20 per visit Total FFS Visit Volume Payer Mix: Blue Cross Highmark Reimbursement Rates: Blue Cross Highmark Variable Costs Resource Inputs: Labor Supplies Resource Input Prices: Labor Supplies Fixed Costs (overhead, plant, and equipment) 48,000 total hours 100,000 total units $25.00 per hour unit $500,000 $1.50 per Selo a. Construct Chelsea Clinic's operating budget for 2020. 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. 0020 are Format for parts be follow the notes provided Follow the notes to assist in calculating the variances Actualto Static Budget Variance Static Budget Flexible Budget Actual Mgmt Yolume Variance Variance Mant Vance Stalcados Static Budget Varia volume Vans be uscat Assi Stacle 90,000 Actual change 100,000 VOU Cine M. Highmar vists Tort Phmtenent Role Blue Cross Highmark 25 20 $22 $10 $ Fixed Unts RHIIR Blue Cross the Horie Tall warble Cosas I. 3+piaa chrich Fixed Costs 40C 120,000 $ S..50 SG00,000 50 1520 $24 si 54 $1.50 8600,000 Costs: be Labor Supplies c4M 4 l FICH: C Total Dosts Phone Mgmi Variance Revenue variance = Actual rev - Static rev Cost variance - Static costs - Actual costs Profit Variance RI WACH Cool nch Check Laber var aos = Flexibela.cr costs - Actual labor costs Suscles verance = Flexides.poles cists - Actua suscles costs Supe Curl Ravenue Variance Veure Vranco Volume variance - Flexible rev. - Static rev Price variance - Actual rev. - Flexible rev. - PVC 1 Luzer Rath LFI iba Vise Laborrate variance - Sac rate - Actual rate) Actual abcr hours Labrederova ance = Flexbercu's - Ucual hoursi Static rate $5 Volume variance = Static costs - Flexible costs Manage variance = Flex. costs - Actual costs Cast Variance 1: 14TH = HH2= Mam Waranec To Cast Verlac SEP, Frice 8.fpy Used Surcles mice varance = (Static prive-Actual price Actualunts Suspiss sage variance = Flobe.is - Actual unts Salice Lubert Buy Labor variance = Flexible labor costs - Actual labor costs Supplies variance = Flexible supoles costs - Actual supplies costs - Lala Voluts Wit Spily Value Vert VI H-1-. Taar