Response to the following problem:
Southwest Iowa Hospital began using standards to evaluate its Admissions Department. The standards were 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, 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 (36 hours per week, with no overtime) at $21 per hour. For the most recent week, the department handled 55 unscheduled and 210 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?
c. Compute a time variance. How well did the department perform for the week?