The Foster Insurance company developed standard times for processing claims. When a claim was received at the processing center, it was first reviewed and classified as simple or complex. The standard time for processing was: Simple claim Complex claim 45 minutes 3 hours Employees were expected to be productive 8 hours per day. Compensation costs were $92 per day per employee. During April, which had 21 working days, the following number of claims were processed: Simple claims Complex claims 3,050 processed 650 processed Required: a. Calculate the number of workers that should have been available to process April claims. (Do not round intermediate calculations.) b. Assume that 28 workers were actually available throughout the month of April. Calculate a labor efficiency variance expressed as both a number of workers and a dollar amount for the month. (Round "Efficiency variance, in number of workers" to nearest whole number. Use the rounded number in subsequent calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

The Foster Insurance company developed standard times for processing claims. When a claim was received at the processing center, it was first reviewed and classified as simple or complex. The standard time for processing was: Simple claim Complex claim 45 minutes 3 hours Employees were expected to be productive 8 hours per day. Compensation costs were $92 per day per employee. During April, which had 21 working days, the following number of claims were processed: Simple claims Complex claims 3,050 processed 650 processed Required: a. Calculate the number of workers that should have been available to process April claims. (Do not round intermediate calculations.) b. Assume that 28 workers were actually available throughout the month of April. Calculate a labor efficiency variance expressed as both a number of workers and a dollar amount for the month. (Round "Efficiency variance, in number of workers" to nearest whole number. Use the rounded number in subsequent calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero 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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