User Account

All Pages

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

Mergers Acquisition Pooling of interests method, Mergers Acquisition Merge...

Mergers Acquisition Mergers and acquisitions involve complex accounting treatment a merger, defined as amalgamation in India, involves the absorption of the target company by the

Instrumentation and control Engee., all the types of inductor which are kno...

all the types of inductor which are known?????

Electronic apu fuel control system in aircraft , Electronic APU fuel contro...

Electronic APU fuel control System in Aircraft : Electronic fuel control emulates the mechanical system, however it provides control in a slightly different way. The electronic

Density correction factor, superheated steam flow measurement please provid...

superheated steam flow measurement please provide formula used for density correction factor

Aviation legislation design and type certificate, Design, Construction and ...

Design, Construction and Type Certificate The following chapter covers the initial design, construction, registration and test flying of the first prototype of a new aircraft.

Oil supply failure - propeller, Oil supply failure - Propeller: To prev...

Oil supply failure - Propeller: To prevent an overspeed caused by an oil supply failure, one of two methods may be employed: • Hydraulic lock valve The pitch lock mecha

Bonds, Objective: Students should familiarize themselves with bonds and/or ...

Objective: Students should familiarize themselves with bonds and/or preferred stock as an investment opportunity and as a source of funds. In this assignment students will determin

Propeller control, Propeller Control: There is no separate propeller co...

Propeller Control: There is no separate propeller control selector for this engine / propeller combination. Instead of a separate propeller control lever, the governor is desi

Cash flow diagrams, Cash Flow Diagrams We will use a cash flow approac...

Cash Flow Diagrams We will use a cash flow approach to analyze the flow of money through out a planning horizon. A cash flow occurs when money actually change hands. We will u

Means of escape - place of safety, Means of escape - place of safety: ...

Means of escape - place of safety: The means of escape in a building are often supplemented by a fire warning system that may or may not include automatic detection, depending

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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