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Chelsea Clinics static budget, flexible budget and actual expense information for 2020 is listed below....

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Accounting

Chelsea Clinics static budget, flexible budget and actual expense information for 2020 is listed below.

Assumptions: Static Budget Flexible Budget Actual Results
Blue Cross Visits 36,000 40,000 40,000
Highmark Visits 54,000 60,000 60,000
Total Visits 90,000 100,000 100,000
Revenues
Blue Cross $ 900,000 $ 1,000,000 $ 1,120,000
Highmark $ 1,080,000 $ 1,200,000 $ 1,080,000
Total $ 1,980,000 $ 2,200,000 $ 2,200,000
Costs
Variable:
Labor $ 1,200,000 $ 1,333,333 $ 1,400,000
Supplies $ 150,000 $ 166,667 $ 225,000
Total Variable $ 1,350,000 $ 1,500,000 $ 1,625,000
Fixed Costs $ 500,000 $ 500,000 $ 500,000
Total Costs $ 1,850,000 $ 2,000,000 $ 2,125,000
Profit $ 130,000 $ 200,000 $ 75,000

3a. Based on this information, calculate revenue variance.

Choice: $220,000

Choice: $318,000

Choice: $25,000

Choice: ($55,000)

3b. Based on this information, calculate cost variance.

Choice: $95,000

Choice: $145,000

Choice: ($275,000)

Choice: ($100,000)

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Accounting