Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two...

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Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admiss

business accounting

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Answer 1

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The amount that is actually spent on labour for tbe week is, no. of labour hours * rate per hour, here number of labour hours is arrived at by multiplying the number of full time people and hours worked per one person thai is, 40 hours per person * 4 people = 160 labour hours. Therefore amount spent on labour will be 160 labour hours * 15 per labour hour = $2400.
Standard hours for actual volume of work is calculated by multiplying standard hour per one unit of output * actual units of output, therefore
1. Standard hours for unscheduled admissions = 30 mins * 140 admissions = 4200 minutes that is 70 hours
2. Standard hours for scheduled admissions = 15 mins * 340 admissions = 5100 minutes that is 85 hours
The labour time varience is calculated by comparing standard hours for actual output with the actual hours taken that is standard hours - actual hours.
1. Standard hours = 70 + 85 = 155 hours
2. Actual hours taken = 160 hours
3. Labour time varience = 155 - 160 = 5 hours adverse.
The reasons that may result in adverse labour time varience are,
1. Idle time of labour,
2. Server breakdowns,
3. Inefficiency of labour.

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Valley Hospital began using standards to evaluate its Admissions Department. The standard was broken into two...

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