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Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types admissions as follows: Type of Admission Unscheduled Scheduled Standard Time to Complete Admission Record 30 min. 20 min. The unscheduled admission took longer because name, address, and insurance information needed to be determined and at the time of admission. Information was collected on scheduled admissions prior to admitting the patient, thus requirin in admissions. most recent w

Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types admissions as follows: Type of Admission Unscheduled Scheduled Standard Time to Complete Admission Record 30 min. 20 min. The unscheduled admission took longer because name, address, and insurance information needed to be determined and at the time of admission. Information was collected on scheduled admissions prior to admitting the patient, thus requirin in admissions. most recent w

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter23: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 2MAD: Admissions time variance Valley Hospital began using standards to evaluate its Admissions...
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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: Type of Admission Unscheduled Scheduled Standard Time to Complete Admission Record 30 min. 20 min. The unscheduled admission took longer because name, address, and insurance information needed to be determined and ver at the time of admission. Information was collected on scheduled admissions prior to admitting the patient, thus requiring les in admissions. The Admissions Department employs three full-time people for 40 hours per week at $21 per hour. For the most recent week, department handled 136 unscheduled and 174 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 computati round the standard direct labor rate to the earest whole cent. Enter a favorable variance as a negative number using minus sign and an unfavorable variance as a positive number. Favorable Time variance d. Which of the following factors may cause a favorable direct labor time variance for the Admissions Department? All of the above.
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: Type of Admission Unscheduled Scheduled Standard Time to Complete Admission Record 30 min. 20 min. The unscheduled admission took longer because name, address, and insurance information needed to be determined and ver at the time of admission. Information was collected on scheduled admissions prior to admitting the patient, thus requiring les in admissions. The Admissions Department employs three full-time people for 40 hours per week at $21 per hour. For the most recent week, department handled 136 unscheduled and 174 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 computati round the standard direct labor rate to the earest whole cent. Enter a favorable variance as a negative number using minus sign and an unfavorable variance as a positive number. Favorable Time variance d. Which of the following factors may cause a favorable direct labor time variance for the Admissions Department? All of the above.
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