Budgeted: # of FFS Visits = 200 # of Capitated Visits = 50 Revenue per visit = $
ID: 2497607 • Letter: B
Question
Budgeted:
# of FFS Visits = 200
# of Capitated Visits = 50
Revenue per visit = $50
PMPM Revenue = $10
Member months = 100
Variable Cost per Visit = $20
Fixed costs = $2,000
Actual:
# of FFS Visits = 300
# of Capitated Visits = 100
Revenue per visit = $60
PMPM Revenue = $10
Member months = 200
Variable cost per visit = $25
Fixed costs = $3,000
Static (Budgeted)
Flexible
Actual
Revenues:
FFS
10,000
18,000
Capitated
1,000
2,000
Total Revenues
11,000
20,000
Costs:
Variable:
FFS
4,000
7,500
Capitated
1,000
2,500
Total Variable Costs
5,000
10,000
Fixed Costs
2,000
3,000
Total Costs
7,000
13,000
Profit
4,000
7,000
Calculate the volume variance for revenue. If the variance is negative put a – in front of the number (i.e. -200) $_______________
Using the information from the previous problem, calculate the price variance for revenue.If the variance is negative put a – in front of the number (i.e. -200).$____________
Budgeted:
# of FFS Visits = 200
# of Capitated Visits = 50
Revenue per visit = $50
PMPM Revenue = $10
Member months = 100
Variable Cost per Visit = $20
Fixed costs = $2,000
Actual:
# of FFS Visits = 300
# of Capitated Visits = 100
Revenue per visit = $60
PMPM Revenue = $10
Member months = 200
Variable cost per visit = $25
Fixed costs = $3,000
Static (Budgeted)
Flexible
Actual
Revenues:
FFS
10,000
18,000
Capitated
1,000
2,000
Total Revenues
11,000
20,000
Costs:
Variable:
FFS
4,000
7,500
Capitated
1,000
2,500
Total Variable Costs
5,000
10,000
Fixed Costs
2,000
3,000
Total Costs
7,000
13,000
Profit
4,000
7,000
Explanation / Answer
Sales Variance A B C Actual Quantity Actual Rate Actual Revenue Actual Quantity Standard Rate Standard Revenue for Actual Quantity Standard Quantity for Actual Output Standard Rate Standard Cost FFS 300.00 $ 60.00 $ 18,000.00 300.00 $ 50.00 $ 15,000.00 200.00 $ 50.00 $ 10,000.00 Capitated 200.00 $ 10.00 $ 2,000.00 200.00 $ 10.00 $ 2,000.00 100.00 $ 10.00 $ 1,000.00 Total $ 20,000.00 $ 17,000.00 $ 11,000.00 Revenue Price Variance = A - B $ 3,000.00 Revenue Volume Variance = B - C $ 6,000.00
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