Correct the ones witn a red X

Standards for Nonmanufacturing Expenses for a Service Company The Radiology Department provides imaging services for Emergency Medical Center One important activity in the Radiology Department is transcribing digitally recorded analyses of images into a written report. The manager of the Radiology Department determined that the average transcriptionist could type 700 lines of a report in an hour. The plan for the first week in May called for 81.900 typed lines to be written. The Radiology Department has three transcriptionists. Each transcriptionist is hired from an employment firm that requires temporary employees to be hired for a minimum of a 40-hour week. Transcriptionists are paid $23.00 per hour. The manager offered a bonus if the department could type more lines for the week, without overtime. Due to high service demands the transcriptionists typed more lines in the first week of May than planned. The actual amount of lines typed in the first week of May was 8.900 es without overtime. As a result the bonus caused the average transcription show rate to create $30.00 per hour during the first week in May an amount is zero, enter"O and choose "Not applicable from the Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number dropdown Required: 1. If the department typed 81.900 lines according to the original plan, what would have been the labor time variance? 69 Unfavorable 2. What was the labor time variance as a result of typing 88.900 lines? 161 X Favorable 3. What was the labor rate variance as a result of the bonus? 840 Unfavorable 3 4. The manager is trying to determine a better decision would have been to hire a temporary transcriptions to meet the higher typing demands in the first week of May rather than paying out the bonus. If another employee was hired from the employment form, what would have been the labor time variance in the first week? 759 Unfavorable 5. Which decision is better paying the bonus or hiring another transcriptionist? Paying the bonus 6. Are there any performance-related issues that the labor time and rate variances fail to consider? The labor rate and time variances fail to consider the number of errors in the report from typist fatigue. A report that has many errors will require significant time for correction at a later date. Thus, managers should should consider the efficiency of doing the work but also the quality of the work