Question

Northwest Medical Testing draws blood samples from approximately 2,500 clients each month. The standard time for a technician to draw and prepare a blood sample for testing is 10 minutes. The standard wage rate for technicians is $20 per hour. During August, Northwest hired a temporary employee at $30 per hour to fill in for a technician who quit unexpectedly. During the month, technicians processed 2,400 samples and were paid $11,050 for 425 hours of work related to drawing and preparing blood samples.

Required
Calculate labor rate and efficiency variances for August, and comment on whether labor costs for technicians appear to be in control or out of control.



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  • CreatedSeptember 23, 2013
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