Solution-How much was actually spent on labor for the week

How much was actually spent on labor for the week

Reference no: EM132707145

Problem - 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	30 min
Scheduled admission	15 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 (36 hours per week, with no overtime) at $21 per hour. For the most recent week, the department handled 55 unscheduled and 210 scheduled admissions.

Required -

a. How much was actually spent on labor for the week?

b. What are the standard hours for the actual volume for the week?

c. Compute a time variance. How well did the department perform for the week?

Reference no: EM132707145

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How much was actually spent on labor for the week

Reference no: EM132707145

Reference no: EM132707145

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