Question: problem 1 tallahassee clinic projected the following budget information for...
Question details
Problem 1
Tallahassee Clinic projected the following budget information for 2018:
Total FFS Visit Volume 
90,000 visits 
Payer Mix: 

Blue Cross 
40% 
Celtic Insurance Company 
60% 
Reimbursement Rates: 

Blue Cross 
$25 per visit 
Celtic Insurance Company 
$20 per visit 
Variable Costs – Resource Inputs: 

Labor 
48,000 total hours 
Supplies 
100,000 total units 
Variable Costs – Input Prices: 

Labor 
$25 per hour 
Supplies 
$1.50 per unit 
Fixed Costs (overhead, plant, and equipment) 
$500,000 
Construct Tallahassee Clinic’s static operating budget for 2018. (See Exhibit 8.3, page 283. Note that there are four components that need to be included: Volume Assumptions, Revenue Assumptions, Cost Assumptions, and the Pro Forma Profit and Loss or P&L projected Statement.)
Problem 2
Refer to Problem 1 above. Tallahassee Clinic’s actual results for 2018 are shown in the table below:
Total FFS Visit Volume 
100,000 visits 
Payer Mix: 

Blue Cross 
40% 
Celtic Insurance Company 
60% 
Reimbursement Rates: 

Blue Cross 
$28 per visit 
Celtic Insurance Company 
$18 per visit 
Variable Costs – Resource Inputs: 

Labor 
50,000 total hours 
Supplies 
150,000 total units 
Variable Costs – Input Prices: 

Labor 
$28 per hour 
Supplies 
$1.50 per unit 
Fixed Costs (overhead, plant, and equipment) 
$500,000 
a. Construct Tallahassee Clinic’s flexible budget for 2018 and actual operating results for 2018. (Hint: place the three budgets side by side. See Exhibits 8.4 and 8.5).
b. What is the profit variance?
c. Wat is the revenue variance?
d. What is the cost variance?
e. Focus on the revenue side. What is the volume variance?
f. Focus on the revenue side. What is the price variance?
g. Focus on the cost side. What is the volume variance?
h. Focus on the cost side. What is the management variance?
I ONLY NEED THE ANSWERS TO PROBLEM 2 BUT IT REFERENCED PROBLEM 1