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You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data is provided. Use the following data to calculate the variances.BudgetActualInpatient Costs$12,568,500$16,618,350Members42,00042,000Admission Rate0.0700.095Case Mix Index0.900.85Cost per Case (CMI = 1.0)$4,750$4,900Question 2.Budgeted Procedures$10,000Budgeted Cost$400,000Desired Profit$80,000PayerVolume%Discount%Blue Cross204Unity PPO1510Kaiser1010Self Pay54050%Question 3.BudgetActualWage Rate per Hour$16.00$17.00Fixed Hours320320Variable Hours per RelativeValue Unit (RVU)1.01.1Relative Value Units (RVUs)1,0001,200Total Labor Hours1,3201,640Labor Costs$21,120$27,880Cost per RVU$21.12$23.23Question 4.Question 5.Question 6.Question 7.

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