Analyze valley hospital's admissions time variance Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types ofadmissions as follows:Standard Time toТуре ofCompleteAdmissionAdmission RecordUnscheduled40 min.Scheduled20 min.The unscheduled admission took longer because name, address, and insurance information needed to be determined and verifiedat the time of admission. Information was collected on scheduled admissions prior to admitting the patient, thus requiring lesstime in admissions.The Admissions Department employs four full-time people for 40 hours per week at $12 per hour. For the most recent week, thedepartment handled 132 unscheduled and 240 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.)hoursc. 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 minussign and an unfavorable variance as a positive number.FavorableTime variance

Variance is the value of deviation from the pre-set standards of the company. Direct Time Variance…

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 ce round the standard direct labor rate to the nearest whole cent. Enter a favorable variance as a negative number us sign and an unfavorable variance as a positive number. Favorable

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 ce round the standard direct labor rate to the nearest whole cent. Enter a favorable variance as a negative number us sign and an unfavorable variance as a positive number. Favorable

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 2MAD

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