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

Matlab, The 3 sum problem: (20 pts.) Provided a 1D array of integers, find ...

The 3 sum problem: (20 pts.) Provided a 1D array of integers, find all combinations of 3 values from this set such that: a+b+c=0 For example, if one were provided with the set [3 1

Effects of temperature and altitude on engine, Effects of Temperature and A...

Effects of Temperature and Altitude. Cold and/or Low On cold days the air density will increase. If the engine has a ‘part throttle rating' and the throttle is advanced to

Legal issues and professional ethics in engineering, Write a detailed repor...

Write a detailed report under the theme "Legal Issues and Professional ethics in Engineering". Some of the topics that you can consider, but not limited to them, are as follow:

Aerodynamics, what is centrifugal twisting moment

what is centrifugal twisting moment

Dsp, find IDFT of the sequence X(k)={5,0,1,-j,0,1,0,1,j,0}

find IDFT of the sequence X(k)={5,0,1,-j,0,1,0,1,j,0}

Heat transfer, Q. 1 A 50 cm diameter pipeline in the Arctic Carries hot oi...

Q. 1 A 50 cm diameter pipeline in the Arctic Carries hot oil at 30 0C and exposed to a coefficient surrounding temperature of -20 0C. Special powder insulation 5 cm thick surround

Assignment , I want help for the circuit theory

I want help for the circuit theory

Fire alarm systems, Fire alarm systems: All buildings require a means ...

Fire alarm systems: All buildings require a means by which the warning  of  fire  can  be  given  to  all occupants.  In the very smallest premises this might be achievable by

Water traetment, what are the different phosphates used in water treatment?...

what are the different phosphates used in water treatment?

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