Direct Labor Standards for Nonmanufacturing 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 Type of Admission Admission Record Unscheduled admission 30 min. Scheduled admission 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. The Admissions Department employs three full-time people (40 productive hours per week, with no overtime) at $18 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 negative number using a minus sign and an unfavorable variance as a positive number. Time variance

Direct Labor Standards for Nonmanufacturing 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 Type of Admission Admission Record Unscheduled admission 30 min. Scheduled admission 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. The Admissions Department employs three full-time people (40 productive hours per week, with no overtime) at $18 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 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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Mercy Hospital staffs its medical/surgical floors with nurses depending on the number of pa- tients assigned to the floor and the severity of their condition. The index used to capture nurse effort is termed a relative value unit, or RVU. For example, taking vital signs for a single patient may be equal to one RVU. RVU's are then summed to estimate the total RVU requirements for the floor. From this, the nursing staff budget is determined. The medical/surgical floor is scheduled to have 25 patients for each day of the coming seven-day week. Some patients will require more nursing effort than others, depending on the severity of their conditions or their ages. The following table summarizes the expected RVU requirements for the patients: Number of Patients RVUS per Day 5 20 8 25 10 30 40 A nurse earns $180 per day and is able to perform 40 RVUS per day. a. Determine the total number of RVUS expected per day for the coming week. b. Determine the total weekly nurse budget for the coming…
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Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. For labor cost in the lab, Compute a labor rate variance and a labor efficiency variance Compute the variable overhead rate and efficiency variances.
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Cost of Quality Report A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms Processing lost customer reservations Reworking incorrectly prepared room service meals Employee training Total $47,600 23,800 95,200 71,400 $238,000 Sales are $1,700,000. Prepare a cost of quality report. Round percent of sales to one decimal place. Quality Cost Classification Prevention Appraisal Internal failure External failure Total Cost of Quality Report Quality Cost Percent of Total Percent of Quality Cost Total Sales % % % % % % % % % %
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5. The administrator of ABC Hospital would like to know the relationship between the costs of admitting in relation to the number of patients being admitted and determine the cost formula. The following are the related data for the past five months that will be used determine such cost formula. Month |# of Patients Admitted |Admitting Costs January 1,800 P 14,700 February 1,900 P 15,200 March 1,700 P 13,700 April 1,600 P 14,000 May 1,500 P 14,300 The controller suggested to use the high-low method approach to derive for the cost formula. If the controller’s suggestion is to be followed: How much would be the total admitting costs if no patient is admitted in June? 6. The following cost relate to XYZ Corp for the year: Sales commission expenses P 185,000 Direct materials…
Analyze Valley Hospital's admissions time variance Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Standard Time to Complete Type of Admission Record Admission Unscheduled 30 min. 20 min Scheduled 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 fulll-time people for 40 hours per week at $12 per hour. For the most recent week, the department handled 184 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…