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 Admission Record Type of Admission Unscheduled admission 40 min. Scheduled admission 10 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 four full-time people (40 productive hours per week, with no overtime) at $12 per hour. For the most recent week, the department handled 132 unscheduled and 456 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 (round to the nearest whole hour)? fill in the blank 2 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 $fill in the blank 3 FavorableUnfavorable
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 Admission Record Type of Admission Unscheduled admission 40 min. Scheduled admission 10 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 four full-time people (40 productive hours per week, with no overtime) at $12 per hour. For the most recent week, the department handled 132 unscheduled and 456 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 (round to the nearest whole hour)? fill in the blank 2 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 $fill in the blank 3 FavorableUnfavorable
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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Transcribed Image Text: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
Admission Record
Type of Admission
Unscheduled admission
40 min.
Scheduled admission 10 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 four full-time people (40 productive hours per week, with no overtime) at $12 per
hour. For the most recent week, the department handled 132 unscheduled and 456 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 (round to the nearest whole hour)?
fill in the blank 2 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 $fill in the blank 3 FavorableUnfavorable
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