For AccountingGenius ONLY
hooahp
hw222.docx8.4
a. Construct Carroll’s flexible budget for 2011
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|
Static Budget Flexible Budget Actual Results |
Flexible Budget |
Actual Results |
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Assumptions: |
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|
|
|
FFS visits |
36,000 |
34,000 |
34,000 |
|
Capitated visits |
54,000 |
43,200 |
43,200 |
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Total |
90,000 |
77,200 |
77,200 |
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|
|
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Revenues: |
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|
|
|
FFS |
900,000 |
850,000 |
952,000 |
|
Capitated |
1,080,000 |
990,000 |
990,000 |
|
Total |
1,980,000 |
1,840,000 |
1,942,000 |
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|
|
|
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Costs: |
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Variable: |
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|
|
|
FFS |
540,000 |
510,000 |
602,487 |
|
Capitated |
180,000 |
648,000 |
765,513 |
|
Total |
1,350,000 |
1,158,000 |
1,368,000 |
|
|
|
|
|
|
Contribution margin |
630,000 |
|
574,000 |
|
Fixed costs |
500,00 |
500,000 |
325,000 |
|
Profit |
130,000 |
|
1,099,000 |
b. What are the profit variance, revenue variance, and cost variance?
c. consider the revenue variance. What is the component volume variance? The price variance?
