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Business, 03.08.2021 16:10 johndoesnutz4690
Use the following information for problems 17–19.
A dermatology clinic expects to contract with an HMO for an estimated 80,000 enrollees. The HMO expects 1 in 4 of its enrolled members to use the dermatology services per month.
At the end of the year, the dermatology clinic’s business manager looked at her monthly figures and saw that the number of enrolled members had increased by 5% over the budgeted amount, and that 1 in 3 of the total HMO members had used the dermatology services per month.
Actual and budgeted statistics are presented below. The total variance is $70,000 and is unfavorable:
Budgeted
Actual
Enrollees
80,000
84,000
Usage Rate
0.25
0.3333
Visits
20,000
28,000
Cost
$200,000
$270,000
Cost Per Visit
$10.00
$9.643
17. Determine the enrollment variance for the month.
18. Determine the utilization variance for the month.
19. Determine the efficiency variance for the month.
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Answers: 3
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Use the following information for problems 17–19.
A dermatology clinic expects to contract with an...
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