Chelsea Clinics static budget, flexible budget and actual expense information for 2020 is listed below....
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Accounting
Chelsea Clinics static budget, flexible budget and actual expense information for 2020 is listed below.
| Assumptions: | Static Budget | Flexible Budget | Actual Results | |
| Blue Cross Visits | 36,000 | 40,000 | 40,000 | |
| Highmark Visits | 54,000 | 60,000 | 60,000 | |
| Total Visits | 90,000 | 100,000 | 100,000 | |
| Revenues | ||||
| Blue Cross | $ 900,000 | $ 1,000,000 | $ 1,120,000 | |
| Highmark | $ 1,080,000 | $ 1,200,000 | $ 1,080,000 | |
| Total | $ 1,980,000 | $ 2,200,000 | $ 2,200,000 | |
| Costs | ||||
| Variable: | ||||
| Labor | $ 1,200,000 | $ 1,333,333 | $ 1,400,000 | |
| Supplies | $ 150,000 | $ 166,667 | $ 225,000 | |
| Total Variable | $ 1,350,000 | $ 1,500,000 | $ 1,625,000 | |
| Fixed Costs | $ 500,000 | $ 500,000 | $ 500,000 | |
| Total Costs | $ 1,850,000 | $ 2,000,000 | $ 2,125,000 | |
| Profit | $ 130,000 | $ 200,000 | $ 75,000 | |
3a. Based on this information, calculate revenue variance.
Choice: $220,000
Choice: $318,000
Choice: $25,000
Choice: ($55,000)
3b. Based on this information, calculate cost variance.
Choice: $95,000
Choice: $145,000
Choice: ($275,000)
Choice: ($100,000)
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