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Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883

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BuyFindarrow_forward

Survey of Accounting (Accounting I)

8th Edition
Carl Warren
ISBN: 9781305961883
Textbook Problem

Direct labor standards for nonmanufacturing expenses
Southwest Iowa Hospital began using standards to evaluate its Admissions Department. The standards were broken into two types of admissions as follows:

The unscheduled admission took longer, since name, address, and insurance information needed to be determined at the time of admission. Information was collected on scheduled admissions prior to the admissions, which was less time consuming.
The Admissions Department employs two full-time people (36 hours per week, with no overtime) at $21 per hour. For the most recent week, the department handled 55 unscheduled and 210 scheduled admissions.
a.How much was actually spent on labor for the week?
b. What are the standard hours for the actual volume for the week?
c.Compute a time variance. How well did the department perform for the week?

To determine

(a)

Concept Introduction:

Standard cost is an accounting system which is used by manufacturers to know the difference between actual cost and standard cost of product.

To Compute:

The cost actually spent on labor for the week.

Explanation

Calculation of amount spent on labor for the week is as follows:

  Amount Spent=Number of employees×Total hours worked per employee per week×Hourly rate2employee 

To determine

(b)

Concept Introduction:

Standard cost is an accounting system which is used by manufacturers to know the difference between actual cost and standard cost of product.

To Compute:

The standard hours for the actual volume for the week.

To determine

(c)

Concept Introduction:

Standard cost is an accounting system which is used by manufacturers to know the difference between actual cost and standard cost of product.

To Compute:

The time variances to know how well department perform for the week.

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Chapter 13 Solutions

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Ch-13 P-6CDQCh-13 P-7CDQCh-13 P-8CDQCh-13 P-9CDQCh-13 P-10CDQCh-13 P-11CDQCh-13 P-12CDQCh-13 P-13CDQCh-13 P-14CDQCh-13 P-15CDQCh-13 P-16CDQCh-13 P-17CDQCh-13 P-18CDQCh-13 P-19CDQCh-13 P-20CDQCh-13 P-21CDQCh-13 P-22CDQCh-13 P-23CDQCh-13 P-24CDQCh-13 P-25CDQCh-13 P-26CDQCh-13 P-13.1ECh-13 P-13.2ECh-13 P-13.3ECh-13 P-13.4ECh-13 P-13.5ECh-13 P-13.6ECh-13 P-13.7ECh-13 P-13.8ECh-13 P-13.9ECh-13 P-13.10ECh-13 P-13.11ECh-13 P-13.12ECh-13 P-13.13ECh-13 P-13.14ECh-13 P-13.15ECh-13 P-13.16ECh-13 P-13.17ECh-13 P-13.18ECh-13 P-13.19ECh-13 P-13.20ECh-13 P-13.21ECh-13 P-13.22ECh-13 P-13.23ECh-13 P-13.24ECh-13 P-13.25ECh-13 P-13.26ECh-13 P-13.27ECh-13 P-13.28ECh-13 P-13.29ECh-13 P-13.30ECh-13 P-13.1.1PCh-13 P-13.1.2PCh-13 P-13.1.3PCh-13 P-13.1.4PCh-13 P-13.2.1PCh-13 P-13.2.2PCh-13 P-13.2.3PCh-13 P-13.2.4PCh-13 P-13.2.5PCh-13 P-13.2.6PCh-13 P-13.2.7PCh-13 P-13.2.8PCh-13 P-13.3.1PCh-13 P-13.3.2PCh-13 P-13.4PCh-13 P-13.5PCh-13 P-13.6.1PCh-13 P-13.6.2PCh-13 P-13.6.3PCh-13 P-13.6.4PCh-13 P-13.6.5PCh-13 P-13.6.6PCh-13 P-13.7PCh-13 P-13.1.1MBACh-13 P-13.1.2MBACh-13 P-13.1.3MBACh-13 P-13.1.4MBACh-13 P-13.1.5MBACh-13 P-13.1.6MBACh-13 P-13.2.1MBACh-13 P-13.2.2MBACh-13 P-13.2.3MBACh-13 P-13.2.4MBACh-13 P-13.2.5MBACh-13 P-13.3.1MBACh-13 P-13.3.2MBACh-13 P-13.3.3MBACh-13 P-13.3.4MBACh-13 P-13.4.1MBACh-13 P-13.4.2MBACh-13 P-13.4.3MBACh-13 P-13.4.4MBACh-13 P-13.5.1MBACh-13 P-13.5.2MBACh-13 P-13.5.3MBACh-13 P-13.5.4MBACh-13 P-13.6.1MBACh-13 P-13.6.2MBACh-13 P-13.6.3MBACh-13 P-13.7.1MBACh-13 P-13.7.2MBACh-13 P-13.7.3MBACh-13 P-13.1CCh-13 P-13.2.1CCh-13 P-13.2.2CCh-13 P-13.3.1CCh-13 P-13.3.2CCh-13 P-13.4CCh-13 P-13.5.1CCh-13 P-13.5.2CCh-13 P-13.6CCh-13 P-13.7C

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