HCAD 6005- Volume: Fee-for-Service visits were projected at 20,000.

Volume: Fee-for-Service visits were projected at 20,000. Realized FFS visits were 25,000. 60,000 capitated enrollee visits were projected; realized capitatated visits were 66,000. Price: Fee-for-Service revenues per visit were projected at $35. Realized FFS prices were $31.50. Per Member Per Months premiums were $4.50 for 360,0000 member months (30,000 members x 12 months)Costs: Variable costs were projected at $20 per visit. Realized variable costs were $18.50 per visit. Please Calculate the following:Profit Variance = Actual Profit – Static ProfitRevenue Variance = Actual Revenues – Static RevenuesCost Variance = Static Cost – Actual CostPlease calculate the following: Revenue Variance = Actual Revenues – Static RevenuesVolume Variance = Flexible Revenues – Static RevenuesPrice Variance = Actual Revenues – Flexible RevenuesPlease cacluclate the following: Cost Variance = Static Cost – Actual CostVolume Variance = Static Cost – Flexible CostsManagement Variance = Flexible Costs – Actual CostProblem 2: Refer to Worksheet 2, the Washtenaw Clinic 2014 Budget, in the excel spreadsheet. Some of the relevant data include:Fee-for-Service visits were projected at 48,000. Actual FFS visits were 51,000.Capitated Enrollment was projected at 40,000. Actual Capitated enrollment was 39,000 resulting in 12,000 fewer member months. Expected utilization per member per month was 0.16. Actual utilization per member per month was 0.14.Fee-for-service revenues were projected at $30 per visit. Actual FFS revenues were $28 per visit.Capitated Per Member Per Month (PMPM) premiums were forecast at $4. Actual PMPM premiums were $3.90.75,000 labor hours were projected. Actual labor hours were 72,000.Supply costs were projected at 140,000 at $2 each. Actual supply costs were 120,000 at $1.90 each.The following Static and Actual Results Budgets (and their annotated data) will enable you to a) complete the profit and loss statement based upon the static budget and b) develop a flexible budget for the Washtenaw Clinic for 2014, c) compute the following for the Washtenaw Clinic based on its 2014 budgets (3 points for each set):1a. Profit Variance = Actual Profit – Static Profit1b. Revenue Variance = Actual Revenues – Static Revenues1c. Cost Variance = Static Costs – Actual Costs2a. Revenue Variance = Actual Revenues – Static Revenues2b. Volume Variance = Flexible Revenues – Static Revenues2c. Price Variance = Actual Revenues – Flexible Revenues3a. Cost Variance = Cost Variance = Static Costs – Actual Costs3b. Volume Variance = Static Costs – Flexible Costs3c. Management Variance = Flexible Costs – Actual Costs4) Briefly interpret the Washtenaw’s Clinic’s financial performance with respect to the extent to which its volume variance reflects changes in costs and revenues and with respect to the extent to which prices per visit affected revenues and costs. Explain too why the variable costs per visit rose even though the total labor hours and volume of supplies and costs of supplies decreased (6 of 15 points).