Analyze Valley Hospitals 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	Standard Time to Complete Admission Record
Unscheduled	30 min.
Scheduled	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 admitting the patient, thus requiring less time in admissions.

The Admissions Department employs three full-time people for 40 hours per week at $12 per hour. For the most recent week, the department handled 136 unscheduled and 366 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.