direct labor standards for nonmanufacturing expenses 421284

Exercise 23 11 (Algorithmic)
Direct Labor Standards for Nonmanufacturing Expenses

St. Luke Hospital began using standards to evaluate its Admissions Department. The standard was 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 (40 productive hours per week, with no overtime) at $12.00 per hour. For the most recent week, the department handled 66 unscheduled and 126 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 (round to the nearest whole hour)?
hours

c. Calculate the time variance. In your computation, round the standard direct labor rate to the nearest whole cent. If required, use the minus sign to enter a favorable variance as a negative number.

Report how well the department performed for the week.

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