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Direct Labor Standards for Nonmanufacturing Expenses Southwest Iowa Hospital began using standards to evaluate its Admissions Department. The standards were broken into two types of admissions as follows: Type of Admission Unscheduled admission Scheduled admission Standard Time to Complete Admission Record 10 min. The unscheduled admission took longer, since name, address, and insurance information needed to be determined at the time of admission. Information was collected on scheduled admissions prior to the admissions, which was less time consuming. 30 min. The Admissions Department employs four full-time people (40 productive hours per week, with no overtime) at $12.00 per hour. For the most recent week, the department handled 184 unscheduled and 480 scheduled admissions. a. How much was actually spent on labor for the week? $ 1,920 b. What are the standard hours for the actual volume for the week? 608 X hours 92 X c. Compute a time variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. Favorable

Direct Labor Standards for Nonmanufacturing Expenses Southwest Iowa Hospital began using standards to evaluate its Admissions Department. The standards were broken into two types of admissions as follows: Type of Admission Unscheduled admission Scheduled admission Standard Time to Complete Admission Record 10 min. The unscheduled admission took longer, since name, address, and insurance information needed to be determined at the time of admission. Information was collected on scheduled admissions prior to the admissions, which was less time consuming. 30 min. The Admissions Department employs four full-time people (40 productive hours per week, with no overtime) at $12.00 per hour. For the most recent week, the department handled 184 unscheduled and 480 scheduled admissions. a. How much was actually spent on labor for the week? $ 1,920 b. What are the standard hours for the actual volume for the week? 608 X hours 92 X c. Compute a time variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. Favorable

FINANCIAL ACCOUNTING
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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Direct Labor Standards for Nonmanufacturing Expenses Southwest lowa Hospital began using standards to evaluate its Admissions Department. The standards were broken into two types of admissions as follows: Type of Admission Unscheduled admission Scheduled admission 30 min. 10 min. The unscheduled admission took longer, since name, address, and insurance information needed to be determined at the time of admission. Information was collected on scheduled admissions prior to the admissions, which was less time consuming. Standard Time to Complete Admission Record The Admissions Department employs four full-time people (40 productive hours per week, with no overtime) at $12.00 per hour. For the most recent week, the department handled 184 unscheduled and 480 scheduled admissions. a. How much was actually spent on labor for the week? 1,920 ✔ b. What are the standard hours for the actual volume for the week? 608 X hours c. Compute a time variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. 92 X Favorable
Transcribed Image Text:Direct Labor Standards for Nonmanufacturing Expenses Southwest lowa Hospital began using standards to evaluate its Admissions Department. The standards were broken into two types of admissions as follows: Type of Admission Unscheduled admission Scheduled admission 30 min. 10 min. The unscheduled admission took longer, since name, address, and insurance information needed to be determined at the time of admission. Information was collected on scheduled admissions prior to the admissions, which was less time consuming. Standard Time to Complete Admission Record The Admissions Department employs four full-time people (40 productive hours per week, with no overtime) at $12.00 per hour. For the most recent week, the department handled 184 unscheduled and 480 scheduled admissions. a. How much was actually spent on labor for the week? 1,920 ✔ b. What are the standard hours for the actual volume for the week? 608 X hours c. Compute a time variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. 92 X Favorable
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