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

Related Discussions:- accounting hep

Crystal symmetry, Q.   Define the crystal symmetry with reference to crys...

Q.   Define the crystal symmetry with reference to crystal structure. Ans.CRYSTAL SYMMETRY: A crystal is an orderly array of atoms in space. Atoms organize themselves in an

Financial econometric , need solution in Financial econometric, Do you have...

need solution in Financial econometric, Do you have an expert in Financial econometric

Finding depreciation and amoritizaton, EBITDA is 7.5 million, Net income is...

EBITDA is 7.5 million, Net income is 1.8, 2.0 million is interest expense, corporate tax is 40%. What is the Depreciation and amortization?.

Water, Dear Sir, Please answer the follwing question . Specs: Filterati...

Dear Sir, Please answer the follwing question . Specs: Filteration Capacity 18000 LPH , Tested pressure 6Kg/Sq.cm, Vertical MS pressure Sand filter(flat ends 6mm thick & di

Roll-compacting, Q. Describe the continuous production of metal strip by ro...

Q. Describe the continuous production of metal strip by roll compacting of powder. Differentiate between impregnation and infiltration. Ans. Roll-compacting : It is the

Linear state space equations, Linear state space equations Linear state...

Linear state space equations Linear state space equations consist of a (difierential) state equation? x = Ax + Bu and an (algebraic) output equation y = Cx + Du whe

Engine fuel control systems - aircraft engine, Engine fuel control systems:...

Engine fuel control systems: The thrust of a turbo jet is controlled by varying the amount of fuel that is burnt in the combustion system and in order to operate the safe tempe

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd