Please do not copy from Chegg. I already checked another answer. I have the first part answer. However, could you please explain in detail the second question.

Chelsea Clinic projected the following budget information for 2015:

Total FES Visit Volume	90,000 visits
Paver Mix:
Blue Cross	40%
Highmark	60%
Reimbursement Bata:
Blue Cross	$25 per visit
Highmark	$20 per visit
Variable Costs
Resource Inputs:
Labor	48,000 total hours
Supplies	100,000 total units
Resource Input Prices:
Labor	$25.00 per hour
Supplies	$1.50 per unit
Fixed Costs (overhead, plant, and equipment)	$500,000

Please do not copy from Chegg. I already checked another answer. I have the first part answer. However, could you please explain in detail the second question.

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.