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Aspen Home Healthcare, a regional entity providing in-home care services in and around Aspen, Colorado expected to have 750 visits patients during September 2020 and had budgeted $40,500 in variable costs for the month. Actual patient visits for September 2020 were higher than expected at 825 and variable costs also exceed budget, coming in at $44,550 for the month. In contrast to the higher than expected expenses, revenue came in higher than expected at $61,875, which was above the budgeted revenue of $61,500 expected for September.

How much of Aspen's variance is due to actual volume being higher than budget by 75 visits?

How much of Aspen's variance is due to price differences, ie $75 per visit price vs $82 price per visit budget?

How much is Aspen's total profit variance?

Budget Actual Volume Variance Rate Variance

Total Revenue $61,500 $61,875

Total Costs $40,500 $44,550

Patient Volume 750 825

Revenue Per Visit $82.00 $75.00

Cost Per Visit $54.00 $54.00

Determine the following:

Budget Actual Total Variance Favorable or Unfavorable Volume Variance Rate Variance

Total Patient Revenue

Total Variable Costs

Total Fixed Costs

Total Costs

Monthly Profit/ (Loss)

Volume Variance Formula : (Actual Volume - Budgeted Volume) x Budgeted Rate

Rate Variance Formula: Actual Volume x (Actual Rate - Budgeted Rate)

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