Analyze Valley Hospital's admissions time variance Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Type of Admission Unscheduled Scheduled Standard Time to Complete Admission Record 30 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 admitting the patient, thus requiring less time in admissions. The Admissions Department employs three full-time people for 40 hours per week at $15 per hour. For the most recent week, the department handled 136 unscheduled and 174 scheduled admissions. a. How much was actually spent on labor for the week? b. What are the standard hours for the actual volume of work for the week? (Round to the nearest whole hour.) hours c. Compute the direct labor time variance, and report how well the department performed for the week. 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 $ Favorable d. Which of the following factors may cause a favorable direct labor time variance for the Admissions Department? All of the above.
Analyze Valley Hospital's admissions time variance Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Type of Admission Unscheduled Scheduled Standard Time to Complete Admission Record 30 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 admitting the patient, thus requiring less time in admissions. The Admissions Department employs three full-time people for 40 hours per week at $15 per hour. For the most recent week, the department handled 136 unscheduled and 174 scheduled admissions. a. How much was actually spent on labor for the week? b. What are the standard hours for the actual volume of work for the week? (Round to the nearest whole hour.) hours c. Compute the direct labor time variance, and report how well the department performed for the week. 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 $ Favorable d. Which of the following factors may cause a favorable direct labor time variance for the Admissions Department? All of the above.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Analyze Valley Hospital's admissions time variance
Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows:
Type of
Admission
Unscheduled
Scheduled
Standard Time to
Complete
Admission Record
30 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 admitting the patient, thus requiring less time in admissions.
The Admissions Department employs three full-time people for 40 hours per week at $15 per hour. For the most recent week, the department handled 136 unscheduled and 174
scheduled admissions.
a. How much was actually spent on labor for the week?
b. What are the standard hours for the actual volume of work for the week? (Round to the nearest whole hour.)
hours
c. Compute the direct labor time variance, and report how well the department performed for the week. 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 $
Favorable
d. Which of the following factors may cause a favorable direct labor time variance for the Admissions Department?
All of the above.
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VIEWStep 2: a. Determine the amount spent on labor for the week:
VIEWStep 3: b. Compute the standard hours for the actual volume of work for the week:
VIEWStep 4: c. Calculate the Direct labor time variance:
VIEWStep 5: d. Determine the factors may cause a favorable direct labor time variance :
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