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city hospital_normal and cesarean_Variance analysis




Question;The maternity wing of the city hospital has;two types of patients: normal and cesarean. The standard quantities of labor;and materials per delivery for 2013 are;Normal Cesarean;Direct materials (lbs) 9.0 21;Nursing labor (hrs) 2.5 5;The standard price paid per pound of direct;materials is $10. The standard rate for labor is $16. Overhead is applied on;the basis of direct labor hours. The variable overhead rate for maternity is;$30 per hour, and the fixed overhead rate is $40 per hour.;Actual operating data for 2013 are as;follows;a. Deliveries produced: normal, 4,000;cesarean, 8,000.;b. Direct materials purchased and used;200,000 pounds at $9.50-35,000 for normal maternity patients and 165,000 for;the cesarean patients, no beginning or ending raw material inventories.;c. Nursing labor: 50,700-hours-10,200 hours;for normal patients and 40,500 hours for the cesarean, total cost of labor;$580,350.;Required;1. Prepare a standard cost sheet showing;the unit cost per delivery for each type of patient.;Normal Patients;Standard;Price: Standard Usage(LBS) Standard Cost;Direct Materials;Direct Labor;Variable Overhead;Fixed Overhead;Unit Cost;Cesarean;Patients;Standard;Price: Standard Usage(LBS) Standard Cost;Direct Materials;Direct Labor;Variable Overhead;Fixed Overhead;Unit Cost;2. Compute the materials price and usage;variances for each type of patient.;MPV-Normal Favorable/Unfavorable;MPV-Cesarean Favorable/Unfavorable;MUV-Normal Favorable/Unfavorable;MUV-Cesarean Favorable/Unfavorable;3. Compute the labor rate and efficiency;variances for each type of patient.;LRV-Normal Favorable/Unfavorable;LRV-Cesarean Favorable/Unfavorable;LEV-Normal Favorable/Unfavorable;LEV-Cesarean Favorable/Unfavorable;4. Assume that you know only the total;direct materials used for both products and the total direct labor hours used;for both products. Can you compute the total materials usage and labor;efficiency variances? Explain;MUV= Favorable/Unfavorable;LEV+ Favorable/Unfavorable


Paper#37399 | Written in 18-Jul-2015

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