Labor Variances Hospital Software Sells and Installs Computer Software Used by Hospitals

question 66

Essay

Labor Variances
Hospital Software sells and installs computer software used by hospitals for patient admissions and billing. Every sale requires that Hospital Services modify its proprietary software for the specific demands of the client. Prior to each installation, Hospital Software estimates the number of hours of programming time each job will require and the cost of the programmers. Programmers record the amount of time they spend on each modification, and variance reports are prepared at the end of each installation.
For the Denver General Hospital account, Hospital Software estimates the following labor standards: After the job was completed, the following costs were reported: Required:
Calculate the labor efficiency and labor wage rate variances for the junior and senior programmers on the Denver General Hospital account.

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Definitions:

Family Therapy

A type of psychological counseling that helps family members improve communication and resolve conflicts.

Operant Conditioning

A learning principle associated with the modification of behavior through the consequences of that behavior, such as rewards and punishments.

Psychoanalysis

A therapeutic technique and theory of psychology developed by Sigmund Freud that emphasizes unconscious motivations and conflicts in shaping behavior and personality.

Individual Therapy

A form of psychotherapy where only one client is treated by a therapist in a structured one-on-one session.