a. How much was actually spent on labor for the week? b. What are the standard hours for the actual volume of work for the week? (Round to the nearest whole hour hours c. Compute the direct labor time variance, and report how well the department performed for the week. In your ce round the standard direct labor rate to the nearest whole cent. Enter a favorable variance as a negative number us sign and an unfavorable variance as a positive number. Favorable
a. How much was actually spent on labor for the week? b. What are the standard hours for the actual volume of work for the week? (Round to the nearest whole hour hours c. Compute the direct labor time variance, and report how well the department performed for the week. In your ce round the standard direct labor rate to the nearest whole cent. Enter a favorable variance as a negative number us sign and an unfavorable variance as a positive number. Favorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Analyze valley hospital's admissions time variance
Transcribed Image Text:Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of
admissions as follows:
Standard Time to
Туре of
Complete
Admission
Admission Record
Unscheduled
40 min.
Scheduled
20 min.
The unscheduled admission took longer because name, address, and insurance information needed to be determined and verified
at the time of admission. Information was collected on scheduled admissions prior to admitting the patient, thus requiring less
time in admissions.
The Admissions Department employs four full-time people for 40 hours per week at $12 per hour. For the most recent week, the
department handled 132 unscheduled and 240 scheduled admissions.
a. How much was actually spent on labor for the week?
b. What are the standard hours for the actual volume of work for the week? (Round to the nearest whole hour.)
hours
c. Compute the direct labor time variance, and report how well the department performed for the week. In your computation,
round the standard direct labor rate to the nearest whole cent. Enter a favorable variance as a negative number using a minus
sign and an unfavorable variance as a positive number.
Favorable
Time variance
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