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

Output characteristics , OUTPUT CHARACTERISTICS: Figure shows a "Common...

OUTPUT CHARACTERISTICS: Figure shows a "Common Emitter" amplifier stage. Common Emitter Amplifier Stage With no base/emitter bias applied, there will be no collector

WAVE ANALYZERS, TELL ME THE WORKING OF BASIC WAVE ANALYZER WITH DIAGRAM

TELL ME THE WORKING OF BASIC WAVE ANALYZER WITH DIAGRAM

Nozzle area and shape control, Nozzle Area and Shape Control In a high ...

Nozzle Area and Shape Control In a high by-pass ratio engine with a single-stage fan without inlet guide vanes, the predominant sources governing the overall noise level are th

Physical significance of wave function , Wave function is a complex quantit...

Wave function is a complex quantity, which itself has no physical significance. But square of its magnitude gives the probability of finding a particle in a given volume of space a

Finance, Rajender Kumar was a production worker at competent Motors Limited...

Rajender Kumar was a production worker at competent Motors Limited (CML) which made components and accessories for the automotive industry. He had worked at CML for almost seven ye

Fins vs canards , Fins vs Canards  Canard control - Good lift/latax co...

Fins vs Canards  Canard control - Good lift/latax control for moderate angles of attack. - Shed vortices can interfere with tail to generate roll moment. - Tendency to stall

Qualitative risk assessment - fire protection engineering, Qualitative risk...

Qualitative risk assessment - fire protection engineering: NFPA 551 discusses the differences between qualitative risk assessment and quantitative risk assessment. Qualitat

Negative equity, An accountant says that your firm has negative equity so ...

An accountant says that your firm has negative equity so the firm is bankrupt. discuss ?

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