The Flynn Insurance Company developed standard times for processing claims. When a claim was received at the processing center, it was first reviewed and classified as simple or complex. The standard time for processing was:

Employees were expected to be productive 7.5 hours per day. Compensation costs were $120 per day per employee. During November, which had 20 working days, the following number of claims were processed:

Required:
a. Calculate the number of workers that should have been available to process November claims.
b. Assume that 22 workers were actually available throughout the month of November. Calculate a labor efficiency variance expressed as both a number of workers and a dollar amount for the month.

Transcribed Image Text:

Simple claim Complex claim. ... 30 minutes 1.5 hours