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2 years ago

Here are the 2015 revenues for the Wendover Group Practice Association for four different budgets (in thousands of dollars):

Business

2 answers:

erastova [34]2 years ago

8 0

Answer: The answer is provided below

Explanation:

a). The revenue here shows that

Wendover's patients were capitated. The is because the actual revenue figures were assumed to be $180, but it

later came to $300 which means that the revenue increased.

The reason is that a capitated patient provides fixed payment a year, while a fee for service client pays per usage. With this explanation, it can be concluded that majority of Wendover's patients are fee for service because the difference between static results and the actual results is very high.

) 1. Revenue variance

= Actual Revenues - Static budget

= $ 300 - $ 425

= - $125

2. Volume variance

= Flexible Revenue - Static Budget

= $ 200 - $ 425

= - $ 225

3. Price Variance

= Actual Revenues - Flexible Revenues

=$300 - $200

= $100

4. Enrollment variance

= Flexible Revenues - Static Budget

= $ 180 - $ 425

= - $ 245

5. Utilization variance

= Flexible Revenue- Flexible Budget

= $ 200 - $ 180

= $ 20

Mariana [72]2 years ago

3 0

Answer:

Kindly check Explanation

Explanation:

The difference between capita tes and fee-for-service is how payment is made, In capitates, a fixed annual amount is paid whereby In fee-for-service, payment is made separately for each service demanded. Thus it could be concluded from the data they the patients are fee-for - service due to the difference in the static and actual figure provided.

Given the following :

Static Budget - $425

Flexible (Enrollment/ Utilization) -$200

Budget Flexible (Enrollment) Budget -$180

Actual Results - $300

Revenue variance = (Actual Revenues - Static Revenue)

Revenue variance = ($300-$425) = -$125 (Unfavorable)

This shows that the Wendover have less patients who use the services.

Volume variance = (Flexible Revenues (enrollment and utilization) – Static Revenues)

Volume variance = ($200 – $425) = -$225

Price variance = (Actual Revenues – Flexible Revenue)

Price variance = ($300 - $200)

Price variance = $100 F

Price variance is favorable which means service charge is high.

Enrollment variance = (Flexible Revenues (enrollment) – Static Revenue)

Enrollment variance = $180 – $425 = -$245

Utilization variance =Flexible revenues (enrollment/utilization) - Budget Flexible (Enrollment) Budget

$200 - $180 = $20

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Leno4ka [110]

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1 year ago

Mill Co.’s allowance for credit losses was $100,000 at the end of Year 2 and $90,000 at the end of Year 1. For the year ended De

MatroZZZ [7]

Answer:

The amount worth $6,000 will be debited to the account in Year 2

Explanation:

When the uncollectible accounts are written off, then the debit is created to the allowance and the credit to the accounts receivable. The starting balance in the allowance account is $90,000 and the ending balance is $100,000 and the expense of bad debt is $16,000

The write off is computed as:

Write off = Beginning balance + Bad debt expense - Ending balance

= $90,000 + $16,000 - $100,000

= $106,000 - $100,000

= $6,000

Therefore, the amount of $6,000 is to be write off in Year 2

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3 years ago

The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale

solong [7]

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $400,000

To Common Stock capital $400,000

(Being cash is recorded)

2. Equipment Dr, $60,000

To Cash $15,000

To Note payable $45,000

(Being equipment is recorded)

3. Inventory Dr, $122,000

To Accounts payable $122,000

(Being purchase of inventory is recorded)

4. Accounts receivable $170,000

To Sales revenue $170,000

(Being sales revenue is recorded)

Cost of goods sold Dr, $102,000

To Inventory $102,000

(Being cost of goods sold is recorded)

5. Rent expenses Dr, $5,500

To Cash $5,500

(Being rent expenses is recorded)

6. Prepaid Insurance Dr, $6,550

To Cash $6,550

(Being insurance is recorded)

7. Accounts Payable Dr, $102,000

To Cash $102,000

(Being accounts payable is recorded)

8. Cash Dr, $76,500

To Accounts receivable $76,500

(Being cash is recorded)

9. Depreciation expenses Dr, $1,500

To Accumulated depreciation $1,500

(Being depreciation expenses is recorded)

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3 years ago

Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to have a salvage value of

Tasya [4]

Answer:

B) Debit to accumulated depreciation for $22,500.

Explanation:

As for the information provided,

Depreciation under straight line method for each year = ($45,000 - $5,000)/8 = $5,000 for each year.

Depreciation for 4 years = $5,000 $\times$ 4 = $20,000

Depreciation in 5th year for 6 months = $5,000/2 = $2,500

Total depreciation till 1 July Year 5 = $20,000 + $2,500 = $22,500

Carrying value of equipment in books as on date of sale = $45,000 - $22,500 = $22,500

Sale price = $20,000

Profit or loss on sale of equipment = $20,000 - $22,500 = - $2,500

So therefore, there is loss of $2,500

Thus, option c and option d are invalid.

Further cash received on sale is debited and not credited thus, option a is also invalid.

As the total accumulated depreciation = $22,500

The correct entry will include debit to accumulated depreciation of $22,500.

Thus, option b is correct.

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3 years ago

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