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The Flynn Insurance Company developed standard times for processing claims. When a claim was received at the processing center, it was first reviewed and classified
The Flynn 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 minutes
Complex claim hours
Employees were expected to be productive hours per day. Compensation costs were $ per day per employee. During November, which had working days, the following number of claims were processed:
Simple claims processed
Complex claims processed
Required:
a Calculate the number of workers that should have been available to process November claims.
b Assume that workers were actually available throughout the month of November. Calculate a labor efficiency variance expressed as both a number of workers and a dollar amount for the month.
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