New York City hospital analyzed their patient data in the ICU and categorized patients into two types: short-term and long-term. The standard quantities of labor and materials for each type of patient for 2011 are:
	Short-term	Long-term
Direct Materials (lbs.)	9	21
Nursing labor (hrs.)	2.5	5
Standard price paid for direct materials (per lb.):	$ 10.00
Standard rate for labor (per hour):	$ 16.00
Variable overhead rate for ICU (per hour):	$ 30.00
Fixed overhead rate for ICU (per hour):	$ 40.00
**VOH and FOH are applied (used) on the basis of direct labor hours
Actual operating data for 2011 is as follows:
Total short-term patients:	4,000
Total long-term patients:	8000
Direct materials for short-term patients (in lbs.):	35,000	@ $9.50
Direct materials for long-term patients (in lbs.):	165,000	@ $9.50
Nursing labor for short-term patients (in hours):	10,200
Nursing labor for long-term patients (in hours):	40,500
Total nursing labor hours (both types of patients):	50,700
Total cost of Labor (includes both types of patients):	$580,350
Below, is a prepared standard cost sheet for a short-term patient:
New York City Hospital
Standard Cost Sheet
For Short-term Patients, 2011
	Standard Price	Standard Usage	Standard Cost
Direct materials	$ 10.00	9	$ 90.00
Direct labor	$ 16.00	2.5	$ 40.00
Variable overhead	$ 30.00	2.5	$ 75.00
Fixed overhead	$ 40.00	2.5	$ 100.00
Total standard unit cost			$ 305.00
1. I need assistance in completing a standard cost sheet for the long-term patient using a formula.
New York City Hospital
Standard Cost Sheet
For Long-term Patients, 2011
	Standard Price	Standard Usage	Standard Cost
Direct materials
Direct labor
Variable overhead
Fixed overhead
Total standard unit cost
2. How would I compute the MPV for the short-term patients and decide if favorable or not.
3. How would I compute MUV for the long-term patients and decide if it's favorable or not?
4.How would I compute LRV for the short-term patients and decide if its favorable or not.
5. How would I compute LEV for the long-term patients and decide if its favorable or not.
6. How would I explain to the company what was causing the variances above for their short-term patients, what is one possible (reasonable) cause?