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 40min. Scheduled admission 20min. 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 $15 per hour. For the most recent week, the department handled 102 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 Direct Labor Standards for Nonmanufacturing ExpensesEnglert Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows:Type of AdmissionUnscheduled admissionScheduled admissionStandard Time to CompleteAdmission Record40 min.20 min.The unscheduled admission took longer because name, address, and insurance information needed to be determined and verified at the time ofadmission. 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 $15 per hour. For the most recentweek, the department handled 102 unscheduled and 183 scheduled admissions.a. How much was actually spent on labor for the week?$b. What are the standard hours for the actual volume for the week (round to the nearest whole hour)?hoursc. Calculate the time variance. In your computation, round the standard direct labor rate to the nearest whole cent. Enter a favorable varianceas a negative number using a minus sign and an unfavorable variance as a positive number.Time variance $

A) Actual Labor Cost Calculation:Calculate the total actual hours worked:There are three full-time…

Answered: Direct Labor Standards for…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 2MAD: Admissions time variance Valley Hospital began using standards to evaluate its Admissions...

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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 40min. Scheduled admission 20min. 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 $15 per hour. For the most recent week, the department handled 102 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