Question
In: Accounting
Chelsea Clinic’s actual and budget information for 2020 is listed below, we will use this to...
Chelsea Clinic’s actual and budget information for 2020 is listed below, we will use this to calculate the flexible budget. Chelsea had actual visits of 100,000 patient visits.
Total FFS Visit Volume 100,000 visits
Budgeted FFS Visit Volume 90,000 visits
Budgeted Variable Costs Variable Budget - Volume :
Labor 48,000 total hours
Supplies 100,000 total units
Variable Budget - Prices:
Labor $ 25.00 per hour
Supplies $ 1.50 per unit
Actual Variable Costs Actuals - Volume:
Labor 50,000 total hours
Supplies 150,000 total units
Actuals - Prices
Labor $ 28.00 per hour
Supplies $ 1.50 per unit
When calculating the flexible budget, we will use the actual volume but the budget rates. Based on this information, calculate the flexible budget for total costs (include the fixed proportion). Choice: $1,000,000
Choice: $1,980,000
Choice: $2,000,000
Choice: $3,000,000
Solutions
Expert Solution
| Total FFS Visit Volume 100,000 | Actual hrs/units | Budgeted rate | Cost |
Option 1 (Fixed cost-$1000000) |
Option 2 (Fixed cost- $1,980,000) |
Option 3 (Fixed cost- $2,000,000) |
Option 4 (Fixed cost- $3,000,000) |
| Variable Cost | |||||||
| Labour | 50,000hrs | 25 per hr | 12,50,000 | ||||
| Supplies | 150,000 total units | 1.5 per unit | 2,25,000 | ||||
| Total Variable cost | 14,75,000 | 14,75,000 | 14,75,000 | 14,75,000 | 14,75,000 | ||
| Fixed Cost | 10,00,000 | 19,80,000 | 20,00,000 | 30,00,000 | |||
| Total Cost | 24,75,000 | 34,55,000 | 34,75,000 | 44,75,000 |
ekkarill92 answered 1 year agoRelated Solutions
Chelsea Clinic’s PROJECTED budget information for 2020 is listed below. Please use this information to answer...
Chelsea Clinic’s PROJECTED budget information
for 2020 is listed below. Please use this information to answer the
questions below.
Chelsea Clinic
Total FFS Visit Volume
90,000
visits
Payer Mix:
Blue Cross
40%
Highmark
60%
Reimbursment Rates
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)
$ 500,000.00...
REQUIRED Use the information provided below to prepare the following for March 2020: 2.1. Flexible budget...
REQUIRED Use the information provided below to prepare the
following for March 2020: 2.1. Flexible budget for two different
activity levels i.e. 18 000 and 25 000 units (9) 2.2. Performance
report (11) 2.3. Comment on the following variances: 2.3.1. Sales
(1) 2.3.2. Direct Material (2) 2.3.3. Fixed overheads (2)
INFORMATION Widget Ltd manufactures a single product. It originally
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Given the information below, What is the total variance in the actual and static budget? DeFleur...
Given the information below, What is the total variance in the
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DeFleur manufactures bicycles. The bicycles are manufactured in
two divisions. In the framing division, the carbon bicycle frames
are manufactured. In the assembly division, the components are
assembled to the frame and the bike is ready for sale. There is no
market for the unassembled frames and all manufactured frames are
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The budgeted and actual results for June 2020 are as follows: Budget Actual Production (units) 150,000...
The budgeted and actual results for June 2020 are as
follows:
Budget
Actual
Production (units)
150,000
150,500
Direct material A
300,000m2
£675,000
316,050m2
£695,310
Direct material B
900,000
£18,000
1,053,500
£21,070
Direct labour
37,500 hours
£318,750
37,625 hours
£323,575
Fixed overheads
£287,500
£300,623.75
You are required to:
Calculate all possible variances from the information provided
above for June and use the variances to reconcile the actual cost
of production with the standard cost of production.
Evaluate the variances calculated in...
Use the first web site listed below to find the budget surplus or deficit for the...
Use the first web site listed below to find the budget surplus
or deficit for the last 5 years. Use the second web site to find
the unemployment rate during those same years. Explain whether you
think fiscal policy was appropriate during the last 5 years,
assuming the economy is at the full employment level when the
unemployment rate is 5 percent. Make your reasons
clear.
The Congressional Budget Office is charged with providing
nonpartisan analysis of the economy and...
Use the first web site listed below to find the budget surplus or deficit for the...
Use the first web site listed below to find the budget surplus
or deficit for the last 5 years. Use the second web site to find
the unemployment rate during those same years. Explain whether you
think fiscal policy was appropriate during the last 5 years,
assuming the economy is at the full employment level when the
unemployment rate is 5 percent. Make your reasons
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The Congressional Budget Office is charged with providing
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Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
The manufacturer uses FIFO.
All Variable costs are direct costs
Required:
Prepare an income statement for the Current Year based...
Given the following information: Prior Year (Budget and Actual) Current Year (Budget and Actual) Beginning Inventory...
Given the following information:
Prior Year (Budget and Actual)
Current Year (Budget and Actual)
Beginning Inventory (Units)
0
?
Sales (Units)
600,000
575,000
Manufactured (Units)
600,000
640,000
Selling Price ($/unit)
9.90
10.00
Variable Manufacturing Cost ($/unit)
4.80
5.00
Total Fixed Manufacturing Costs ($)
1,560,000
1,600,000
Variable Selling Cost ($/unit)
1.00
1.00
Total Fixed SG&A Costs ($)
351,000
358,000
Other information:
The manufacturer uses FIFO.
All Variable costs are direct costs
Required:
Prepare an income statement for the Current Year based...
Enter the transactions listed below in the General Journal. January 1, 2019 or 2020 – Use...
Enter the transactions listed below in the General Journal.
January 1, 2019 or 2020 – Use January 1 as the starting date for
transactions. This will give us a one-month accounting period for
reports, etc.
Date
1 Night invested cash in business, $90,000.
Debit: Checking increases.
Credit: Owner’s Equity increases.
1 Paid insurance premium for six-month camping season, $9,000.
(Record the insurance payment as a pre-paid asset.)
Debit: Prepaid asset of insurance
Credit: Checking as cash was reduced
2 Paid...
Given the following information: Prior Year (Budget) Prior Year (Actual) Current Year (Budget) Current Year (Actual)...
Given the following information:
Prior Year (Budget)
Prior Year (Actual)
Current Year (Budget)
Current Year (Actual)
Beginning Inventory (Units)
0
0
?
?
Sales (Units)
600,000
580,000
575,000
570,000
Manufactured (Units)
600,000
590,000
640,000
610,000
Selling Price ($/unit)
9.99
9.90
9.95
10.00
Variable Manufacturing Cost ($/unit)
4.92
4.90
5.00
4.95
Total Fixed Manufacturing Costs ($)
1,584,000
1,561,000
1,625,000
1,599,531
Variable Selling Cost ($/unit)
1.00
1.01
0.99
1.00
Total Fixed SG&A Costs ($)
350,000
353,000
352,850
348,000
Other information:
The manufacturer...
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