Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows:Type of AdmissionStandard Time to CompleteAdmission RecordUnscheduled30 min.         Scheduled20 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 $15 per hour. For the most recent week, the department handled 176 unscheduled and 240 scheduled admissions.a.  How much was actually spent on labor for the week?$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 minus sign and an unfavorable variance as a positive number.Time variance$ d. Which of the following factors may cause a favorable direct labor time variance for the Admissions Department?

Question
Asked Nov 18, 2019
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Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows:


Type of Admission
Standard Time to Complete
Admission Record
Unscheduled 30 min.         
Scheduled 20 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 176 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.)
 hours

c.  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 minus sign and an unfavorable variance as a positive number.

Time variance $  

d. Which of the following factors may cause a favorable direct labor time variance for the Admissions Department?

 

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Expert Answer

Step 1

As there are many requirements in this question, we are answering the first three requirements alone.

Step 2

a.

 

The amount spent on labor for the week is $2,400.

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Calculate the actual amount spent on labor for the week. 'Number of peoplex Rate per hour Actual weekly expenditure = xHours per week (4peoplex$15x 40 hours) -S2,400

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Step 3

 

b.

 

The standard hours for the actual volume for the w...

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Calculate the standard hours for the actual volume for the week. Calculate the total standard time used for the admissions. Total standard (Unscheduled standard time+Scheduled standard time) time =5,280minutes+4, 800 minutes 10,080 minutes or 168 hours Calculate the unscheduled standard time used for the admissions (Number of unscheduled admissions (Unscheduled standard time XUnscheduled standard time 176x30minutes 5,280 minutes Calculate the scheduled standard time used for the admissions (Number of scheduled admissions xScheduled standard time (Schedıled standard time = 240x 20 minutes -4,800 minutes

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