Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 9, Problem 2MAD
A.
To determine
Identify the amount actually spent on labor for the week.
B.
To determine
Ascertain the standard hours for the actual volume of work for the week.
C.
To determine
Compute the direct labor time variance, and to report the way in which the department performed for the week.
D.
To determine
Identify the factors that may cause an unfavorable direct labor time variance for the Admissions department.
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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:
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admissions prior to admitting the patient, thus requiring less time in admissions.
The Admissions Department employs four fulll-time people for 40 hours per week at $12 per hour. For the most recent week, the department handled 184 unscheduled and 240 scheduled admissions.
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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…
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:
Standard Time to
Type of
Complete
Admission
Admission Record
Unscheduled
30 min.
Scheduled
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 admitting the patient, thus requiring less time in admissions.
The Admissions Department employs four full-time people for 40 hours per week at $15 per hour. For the most recent week, the department handled 140 unscheduled
and 340 scheduled admissions.
a. How much was actually spent on labor for the week?
2$
b. What are the standard hours for the actual volume of work for the week?
hours
c. Compute the direct labor time variance, and report how well the department performed for the week. Enter…
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 verified at the time of admission. Information was collected on
scheduled admissions prior to admitting the patient, thus requiring less time in admissions.
The Admissions Department employs three full-time people for 40 hours per week at $15 per hour. For the most recent week, the 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…
Chapter 9 Solutions
Managerial Accounting
Ch. 9 - What are the basic objectives in the use of...Ch. 9 - What is meant by reporting by the principle of...Ch. 9 - What are the two variances between the actual cost...Ch. 9 - The materials cost variance report for Nickols...Ch. 9 - A. What are the two variances between the actual...Ch. 9 - Prob. 6DQCh. 9 - Would the use of standards be appropriate in a...Ch. 9 - A. Describe the two variances between the actual...Ch. 9 - At the end of the period, the factory overhead...Ch. 9 - If variances are recorded in the accounts at the...
Ch. 9 - Direct materials variances Bellingham Company...Ch. 9 - Direct labor variances Bellingham Company produces...Ch. 9 - Factory overhead controllable variance Bellingham...Ch. 9 - Factory overhead volume variance Bellingham...Ch. 9 - Standard cost journal entries Bellingham Company...Ch. 9 - Prob. 6BECh. 9 - Crazy Delicious Inc. produces chocolate bars. The...Ch. 9 - Prob. 2ECh. 9 - Salisbury Bottle Company manufactures plastic...Ch. 9 - The following data relate to the direct materials...Ch. 9 - De Soto Inc. produces tablet computers. The...Ch. 9 - Standard direct materials cost per unit from...Ch. 9 - H.J. Heinz Company uses standards to control its...Ch. 9 - Direct labor variances The following data relate...Ch. 9 - Glacier Bicycle Company manufactures commuter...Ch. 9 - Ada Clothes Company produced 40,000 units during...Ch. 9 - Prob. 11ECh. 9 - Direct materials and direct labor variances At the...Ch. 9 - Flexible overhead budget Leno Manufacturing...Ch. 9 - Prob. 14ECh. 9 - Factory overhead cost variances The following data...Ch. 9 - Thomas Textiles Corporation began November with a...Ch. 9 - Prob. 17ECh. 9 - Factory overhead cost variance report Tannin...Ch. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Income statement indicating standard cost...Ch. 9 - Prob. 22ECh. 9 - Prob. 23ECh. 9 - Rosenberry Company computed the following revenue...Ch. 9 - Lowell Manufacturing Inc. has a normal selling...Ch. 9 - Shasta Fixture Company manufactures faucets in a...Ch. 9 - Flexible budgeting and variance analysis I Love My...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Tiger...Ch. 9 - CodeHead Software Inc. does software development....Ch. 9 - Direct materials and direct labor variance...Ch. 9 - Flexible budgeting and variance analysis Im Really...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Feeling...Ch. 9 - Prob. 5PBCh. 9 - Prob. 1COMPCh. 9 - Advent Software uses standards to manage the cost...Ch. 9 - Prob. 2MADCh. 9 - Prob. 3MADCh. 9 - Prob. 4MADCh. 9 - Ethics in action Dash Riprock is a cost analyst...Ch. 9 - Variance interpretation Vanadium Audio Inc. is a...Ch. 9 - MinnOil performs oil changes and other minor...Ch. 9 - Marten Company has a cost-benefit policy to...Ch. 9 - Prob. 3CMACh. 9 - JoyT Company manufactures Maxi Dolls for sale in...
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