My question is how would I do the calculations to come out with the answer? The answers are there but how do I do the calculations so I understand.

Direct labor variancesinsurance company application The Foster Insurance Company developed standard times for processing claims. When a claim was received at the processing center, it was first reviewed and classified as simple or complex. The standard time for processing was:

Simple Claim: 36minutes

Complex Claim: 1.25hours

Employees were expected to be productive 7.5 hours per day. Compensation costs were $135 per day per employee. During July, which had 20 working days, the following numbers of claims were processed:

Simple Claims: 3000 processed

Complex claims: 960 processed.

Required:

a.Calculate the number of workers that should have been available to process July claims.

b.Assume that 23 workers were actually available throughout the month of July. Calculate a labor efficiency variance expressed as both a number of workers and a dollar amount for the month.

Standar time for processing simple claim = 36 minutes

Standard time for processing complex claim= 1.25 hours

Expected work hours a day =7.5 hours

Compensation cost per employee = $135 per day

Total days of work = 20

Number of process july simple claims = 3000

Number of july complex claims =960

Standard number of workers essential for the month 12 simple and 8 complex so that would give a total of 20 essential workers that are supposed to have been available to process the july claims.

Labor efficiency varience for july in terms of the number of workers and in dollars are 3U and $8,100U respectively