Analyze Valley Hospital's admissions time variance Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Standard Time to Type of Complete Admission Admission Record Unscheduled 30 min. Scheduled 15 min. The unscheduled admision took longer because name, address, and insurance information needed to be determined and verifled 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 four full-time people for 40 hours per week at $15 per hour. For the most recent week, the department handled 140 unscheduled and 340 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? hours c. Compute the direct labor time variance, and report how well the department performed for the week. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

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
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Analyze Valley Hospital's admissions time variance
Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows:
Standard Time to
Type of
Complete
Admission
Admission Record
Unscheduled
30 min.
Scheduled
15 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 four full-time people for 40 hours per week at $15 per hour. For the most recent week, the department handled 140 unscheduled
and 340 scheduled admissions.
a. How much was actually spent on labor for the week?
2$
b. What are the standard hours for the actual volume of work for the week?
hours
c. Compute the direct labor time variance, and report how well the department performed for the week. Enter a favorable variance as a negative number using a minus
sign and an unfavorable variance as a positive number.
Time variance $
d. Which of the following factors may cause an unfavorable direct labor time variance for the Admissions Department?
Transcribed Image Text:Analyze Valley Hospital's admissions time variance Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: Standard Time to Type of Complete Admission Admission Record Unscheduled 30 min. Scheduled 15 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 four full-time people for 40 hours per week at $15 per hour. For the most recent week, the department handled 140 unscheduled and 340 scheduled admissions. a. How much was actually spent on labor for the week? 2$ b. What are the standard hours for the actual volume of work for the week? hours c. Compute the direct labor time variance, and report how well the department performed for the week. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Time variance $ d. Which of the following factors may cause an unfavorable direct labor time variance for the Admissions Department?
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For Step 3 for this problem, how was the actual productive minutes calculated? When I multiplied 140 x 40 x 60, the solution is 336,000. Can you explain how the answer is 9,600? Thank you. 

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