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: Type of Admission Unscheduled admission Scheduled admission Standard Time to Complete Admission Record 40 min. 20 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 three full-time people (40 productive hours per week, with no overtime) at $15 per hour. For the most recent week, the department handled 102 unscheduled and 183 scheduled admissions. a. How much was actually spent on labor for the week? $ b. What are the standard hours for the actual volume for the week (round to the nearest whole hour)? 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 $
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 Type of Admission Admission Record Unscheduled admission 40min. Scheduled admission 20min. 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 three full-time people ( 40 productive hours per week, with no overtime) at $15 per hour. For the most recent week, the department handled 102 unscheduled and 183 scheduled admissions. a. How much was actually spent on labor for the week? $ b. What are the standard hours for the actual volume for the week (round to the nearest whole hour)? 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
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