Question
9.9.12.13 a. Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Type of
9.9.12.13
a. Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows:
Type of Admission | Standard Time to Complete Admission Record |
Unscheduled | 40 min. |
Scheduled | 30 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 $18 per hour. For the most recent week, the department handled 96 unscheduled and 118 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.) $___
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 | $____ |
b. Bellingham Company produces a product that requires 3 standard direct labor hours per unit at a standard hourly rate of $22.00 per hour. 15,600 units used 65,100 hours at an hourly rate of $19.90 per hour.
What is the direct labor (a) rate variance, (b) time variance, and (c) cost variance? Round your answers to the nearest dollar. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct labor rate variance | $___ | Favorable |
b. Direct labor time variance | $___ | Unfavorable |
c. Direct labor cost variance | $___ | Unfavorable |
c. Bellingham Company produced 15,000 units of product that required 4 standard direct labor hours per unit. The standard variable overhead cost per unit is $1.00 per direct labor hour. The actual variable factory overhead was $52,760.
Determine the variable factory overhead controllable variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. $_____
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