8.6 attached for reference

8.7 Refer to Problem 8.6. Chelsea Clinic's actual results for 2015 are shown in the table below. Total FFS Visit Volume Payer Mix: 100,000 visits Blue Cross 40% 60% Highmark Reimbursement Rates: Blue Cross $28 per visit $18 per visit Highmark Variable Costs Resource Inputs 50,000 total hours 150,000 total units (continued) Labor Supplies continued from previous page) Resource Input Prices: $28.00 per hour $1.50 per unit $500,000 Labor Supplies Fixed Costs (overhead, plant, and equipment) a. Construct Chelsea Clinic's flexible budget and actual operating results for 2015. b. What are the profit variance, revenue variance, and cost variance? c. Focus on the revenue side. What is the volume variance? The price variance? d. Now consider the cost side. What are the volume and management variances? Break down the management variance into labor supplies, and fixed costs variances. e. Interpret your results. .6 Chelsea Clinic projected the following budget information for 2015: Total FFS Visit Volume Payer Mix: 90,000 visits Blue Cros Highmark 40% 60% Reimbursement Rates: Blue Cross $25 per visit $20 per visit Highmark Variable Costs Resource Inputs: 48,000 total hours 100,000 total units Labor Supplies Resource Input Prices: $25.00 per hour $1.50 per unit $500,000 Labor Supplies Fixed Costs (overhead, plant, and equipment) a. Construct Chelsea Clinic's operating budget for 2015. b. Discuss how each key budget assumption might result in a budget variance, and name the variance that would be used to examine results associated with each assumption