Refer to Carroll Clinic's 2015 operating budget contained in Exhibit 8.3 (pic below*). Instead of the actual results reported in Exhibit 8.4, assume the results reported below: (pic below *). ANSWER A THROUGH F. A. Construct Carroll's flexible budget for 2015. B. What are the profit variance, revenue variance, and cost variance? C. Consider the revenue variance. What is the component volume variance? The price variance? D. Break down the cost variance into volume and management components. E. Break down the management variance into labor, supplies, and fixed costs variances. F. Interpret your results. In particular, focus on the differences between the variance analysis here and the Carroll Clinic illustration presented in the chapter.

the operating budget c Pal What do 2015 in center's reported surgery Clinic's results 84 Refer to the actu 8.3. of below: 2015 Results reported New results Carro Clinic ll ned Exhibit 84 ih 34,000 visits members 30,000 A. ted lives B. 360,000 member-months utilization per member-month 0.12 43,200 visits Number of visits 77,200 visits C. Total actual visits Revenues 28 per visit A. FFS -x 34,000 actual visits 952,000 $2.75 PMPM B. Capitated lives x 360,000 actual member-months 990,000 $1,942,000 C. Total actual revenues LIL Costs A. Variable Costs: $1,242,000 (46,000 hours at s27/hour) Labor 126,000 (90,000 units at si40 unit Supplies Total variable costs $1,368,000 Variable cost per visit o$ 17.72 ($1,368,000 77,200) B. Fixed Costs: overhead, plant, and 000 equipment C. Total actual costs $1,893,000 IV Profit and Loss Statements Revenues FFS 952,000 Capitated 990,000 Total $1975,000 b. Wh va Br 8.5 In be