Budgeted of FFS Visits 200 of Capitated Visits 50 Revenu

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

Solution

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