Reference no: EM133074930

Question - Aspen Home Healthcare - Budget vs. Actual Variance Analysis - Aspen Home Healthcare, a regional entity providing in-home care services in and around Aspen, Colorado expected to have 750 visits patients during September 2020 and had budgeted $40,500 in variable costs for the month. Actual patient visits for September 2020 were higher than expected at 825 and variable costs also exceed budget, coming in at $44,550 for the month. In contrast to the higher than expected expenses, revenue came in higher than expected at $61,875, which was above the budgeted revenue of $61,500 expected for September.

Required -

1. How much of Aspen's variance is due to actual volume being higher than budget by 75 visits?

2. How much of Aspen's variance is due to price differences, i.e., $75 per visit actual price versus $82 price per visit budget?

3. How much is Aspen's total profit variance?