Name: Problem 10-43 Enter the appropriate amounts or formulas in the shaded cells. An asterisk (*) will appear in the column to the right of an incorrect entry, Essay answers will not be graded. 1. Normal delivery Standard Price Standard Usage Standard Cost Direct materials b. Direct labor hr. Variable overhead hr Fixed overhead hr Unit cost Casarean delivery: Standard Price Standard Usage Standard Cost Direct materials Direct labor Variable overhead Fored overhead Unit cost tb. hr hr hr. AP SP MPV MPV (Normal) MPV (Cesarean SQ SP MUV MUV (Normal) 35,000 MUV (Cesarean) 3 AR SR AH LRV LRV (Normal LRV (Cesarean) AH SH SR LEV LEV (Normal) LEV (Cesarean) 4. Conceptual Connection: Key essay answer here) 5. Conceptual Connection: Key essay answer here) OBJECTI Problem 10-43 Unit Costs, Multiple Products, Variance Analysis, Service Setting 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 2016 are: Normal Cesarean Direct materials (lbs.) 9.0 21 Nursing labor (hrs.) 25 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 2016 are as follows: a. Deliveries produced: normal. 4,000; cesarean, 8,000. b. Direct materials purchased and used: 200,000 pounds at $9.5035,000 for normal mater- nity patients and 165,000 for the cesarean patients: no beginning or ending raw materials 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. 2. Compute the materials price and usage variances for each type of patient. 3. Compute the labor rate and efficiency variances for each type of patient. 4. CONCEPTUAL CONNECTION 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. 5. CONCEPTUAL CONNECTION Standard costing concepts have been applied in the health care industry. For example, diagnostic-related groups (DRGs) are used for prospective pay- ments for Medicare patients. Select a search engine (such as Yahoo! or Google), and (Continued) conduct a search to see what information you can obtain about DRGs. You might try "Medicare DRGs" as a possible search topic. Write a memo that answers the following questions: a. What is a DRG? b. How are DRGs established? How many DRGs are used? d. How does the DRG concept relate to standard costing concepts discussed in the chap. ter? Can hospitals use DRGs to control their costs? Explain. c. A c