accounting hep, Here are the budgets of Brandon Surgery Center for the most recent, Other Engineering

accounting hep, Other Engineering

Assignment Help:

Here are the budgets of Brandon Surgery Center for the most recent historical quarter (in thousands of dollars):
Static Flexible Actual
Number of surgeries 1,200 1,300 1,300
Patient revenue $2,400 $2,600 $2,535
Salary expense $1,200 $1,000 $1,365
Non salary expense $ 600 $ 650 $ 585
Profit $ 600 $ 650 $ 585
The center assumes that all revenues and costs are variable and hence tied directly to patient volume.
a. Explain how each amount in the flexible budget was calculated.
b. Determine the variance for each line of the profit and loss statement in both dollar terms and percentage terms (Each line has a total variance, a volume variance, and a price variance [for revenues] and management variances [for expenses].
c. What do the part b results tell Brandon’s managers about the surgery centers operations for the quarter?

CAROLL CLINIC: NEW 2011 RESULTS
1. Volume
A. FSS 34,000 visits
B. Capitated lives 30,000 members
Number of member months 360,000
Actual utilization per
Member per month
Member per month 0.12
Number of visits 43,200 visits
C. Total actual visits 77,200 visits
2. Revenues
A. FFS $28 visit
X 24,000 actual visits
$952,000
B. Capitated lives $ 2.75 PMPM
X 360,000 actual member visits
$990,000
C. Total actual revenues $1,942,000
Costs
A. Variable costs:

Labor $1,242,000 (46,000 hours at $27/visit)
Supplies $ 126,000 (90,000 units at $1.40/unit)
Total variable costs: $ 17.72 ($1,368,000 x 77,200)
B. Fixed costs:
Overhead, plant
And equipment $525,000
C. Total actual costs: $1,893,000

Profit and Loss Statement:
Revenues
FFS $952,000
Capitated $990,000
Total $1,942,000
Costs
Variable:
FFS $602,487
Capitated $765,513
Total $1,368,000
Contribution margin $574,000
Fixed Costs $525,000
Actual profits $49,000

a. Construct the flexible budget for 2011.
b. What are profit variance?
Revenue variance?
What is the cost variance?
Consider the revenue variance. What is the component volume variance?
What is the price variance?
Break down the management variance into labor, supplies, and fixed costs variances.
Interpret your results.
I AM STILL WAITING FOR QUESTION 1 SUBMITTED TO YOU THAT REQUESTS:
A. WHAT IS THE PER PRICE VISIT TO EARN $100,000
B. WHAT IS THE PER PRICE VISIT WITH A COST VARIABLE OF $10 PER VISIT TO EARN $100,000
Please let me know if you can solve these problems

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

accounting hep, Other Engineering

Related Discussions:- accounting hep

Basic characteristics of fire safety management, Basic characteristics of f...

Dc motor.., what is a domain

Blow moulding and thermoforming process, Q . Write short note on blow moldi...

Radio and television , groun grid amplifier

Classification of lime, Explain the classification of lime

Second order decoupling approximation, The second order (two degree of free...

Tcp/ip, Discuss the effect of supernetting on routing and explain how the i...

Aerodynamics-source of drage, Source of drage Total Drag on an aerofoil...

Sonic airflow - aircraft maintenance, Sonic airflow though divergent and co...

Functional checks of chemical de-icing systems, FUNCTIONAL CHECKS OF CHEMIC...

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT