acturing Expenses Englert Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Standard Time to Complete Admission Record 30 min. 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 the admissions, which was less time-consuming. Type of Admission Unscheduled admission Scheduled admission The Admissions Department employs three full-time people (40 productive hours per week, with no overtime) at $15 per hour. For the most recent week, the department handled 136 unscheduled and 183 scheduled admissions. a. How much was actually spent on labor for the week? b. What are the standard hours for the actual volume for the week (round to the nearest whole hour)? hours c. Calculate the time variance. 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. Time variance

acturing Expenses Englert Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Standard Time to Complete Admission Record 30 min. 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 the admissions, which was less time-consuming. Type of Admission Unscheduled admission Scheduled admission The Admissions Department employs three full-time people (40 productive hours per week, with no overtime) at $15 per hour. For the most recent week, the department handled 136 unscheduled and 183 scheduled admissions. a. How much was actually spent on labor for the week? b. What are the standard hours for the actual volume for the week (round to the nearest whole hour)? hours c. Calculate the time variance. 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. Time variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for the past month. The following information is available: Two types of tests are performed in the lab—blood tests and smears. During the past month, 900 blood tests and 3,300 smears were performed in the lab. Small glass plates are used in both types of tests. During the past month, the hospital purchased 16,500 plates at a cost of $35,640. 2,300 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. During the past month, 2,300 hours of…
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