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 Standard Time to Complete Admission Record Unscheduled admission 40 min. Scheduled admission 30 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. The Admissions Department employs two full-time people (40 productive hours per week, with no overtime) at $15.00 per hour. For the most recent week, the department handled 66 unscheduled and 80 scheduled admissions. a. How much was actually spent on labor for the week? $ fill in the blank 1 b. What are the standard hours for the actual volume for the week? fill in the blank 2 hours c. Compute a time variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount.
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 | Standard Time to Complete Admission Record |
|
| Unscheduled admission | 40 min. | |
| Scheduled admission | 30 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.
The Admissions Department employs two full-time people (40 productive hours per week, with no overtime) at $15.00 per hour. For the most recent week, the department handled 66 unscheduled and 80 scheduled admissions.
a. How much was actually spent on labor for the week?
$ fill in the blank 1
b. What are the standard hours for the actual volume for the week?
fill in the blank 2 hours
c. Compute a time variance. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount.
| $fill in the blank 3 |
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