Wild Rose Hospital began using standards to evaluate its Admissions Department.
The standard was broken into two types of admissions as follows:
Standard Time to Complete
Type of Admission Admission Record
Unscheduled admission ........... 40 minutes
Scheduled admission ............ 20 minutes
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 (40 productive hours per week, with no overtime) at $18 per hour. For the most recent week, the department handled 54 unscheduled and 160 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 digit after the decimal place.
c. Calculate a time variance, and report how well the department performed for the week.