!V. Profit and Lay Statement: Revenues $ 952,000 A. FFS FFS 920,000 Capitated $1,975,000 Total B. Cap Costs: Variable: FFS 5 602,487 Capitated 765,513 C. Ton Total $1,368,000 A. Vari Contribution margin $ 574,000 Lab Fixed costs 525,000 Sup Actual profit S 49,000 T Vari a. Construct Carroll's flexible budget for 2020. B. Fix b. What are the profit variance, revenue vanance, and cost was C. Consider the revenue variance. What is the component yohe variance? The price variance? C. To d. Break down the cost variance into volume and management IV. Profit components. e. Break down the management variance into labor, supplies, and fixed costs variances. f. Break down the labor and supplies variances into rate/price ad efficiency/usage components. g. Interpret your results. In particular, focus on the differences between the variance analysis here and the Carroll Clinic illustration presented in the chapter. 8.5. Instead of the results in problem 8.4, consider the results reports! below: Carroll Clinic: New 2020 Results I. Volume: A. FFS A 34,000 visits B. Capitated lives 31,000 members Number of Assum member-months differe 372,000 Actual utilization per enroll member-month 0.11613 a. Co Number of visits Of C. Total actual visits 43,200 Visits 77,200 ne visits b. WIChapter U: Financial Planning and Budgeting per visit A FFS 34,000 $ 952,000 actual visits 2.75 PMPM B. Capitated lives x372,000 actual member months $1,023,000 C Total actual revenues $1,975,000 A Variable Costs: $1,242,000 (46,000 hours at $27/hour) Labor supplies 126,000 (90,090 units at $1.40/unit) Total variable costs $1,368,000 Variable cost per visit 17.72 ($1,368,000 + 77,200) B. Fixed Costs: Overhead, plant, and rent volume equipment $ 525,000 C. Total actual costs $1,893,000 ugene I Payit and Las Statement: Revenues: upplies, and FFS $ 952,000 Capitated 1,023.000 te/price and Total $1,975,000 Costs: fferences Clinic Variable: older Thant FFS $ 602.487 Capitated 765,513 its reported Total $1,368,000 Contribution margin $ 607,000 Fixed costs 525,000 Actual profit S 82,000 Assame the results reported in problem 8.4 hold, except that a difference existed among budgeted (static) enrollment and realized enrollment. The corrected results are presented above. 1. Construct Carroll's flexible budgets for 2020. (Hint: Because of a change in enrollment, creating three flexible budgets is necessary. See the note to exhibit 8.7.) continued b. What are the profit variance, revenue variance, and cost variance