Englert 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 admission 30 min. Scheduled admission 15 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 the admissions, which was less time consuming.

The Admissions Department employs four full-time people (40 productive hours per week, with no overtime) at $15 per hour. For the most recent week, the department handled 140 unscheduled and 350 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 one decimal place)?


c.Calculate the time variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. In your computation, round the standard direct labor rate to the nearest whole cent.

  1. Time variance $