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Category > Management Posted 15 Jan 2018 My Price 10.00

Foster Insurance Company

Direct labor variances—insurance company application The Foster 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 $135 per day per employee. During July, 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 July claims.

 

b.      Assume that 23 workers were actually available throughout the month of July. Calculate a labor efficiency variance expressed as both a number of workers and a dollar amount for the month.

 

 

 

 

 

Answers

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Status NEW Posted 15 Jan 2018 09:01 PM My Price 10.00

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