Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 20X1 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 $10.00. The standard rate for labor is $16.00. Overhead is applied on the basis of direct labor hours. The variable overhead rate for maternity is $30.00 per hour, and the fixed overhead rate is $40.00 per hour.

Actual operating data for 20X1 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 maternity patients and 165,000 for the cesarean patients; no beginning or ending raw materials inventories.

c. Nursing labor: 50,700 hours10,200 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. 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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What are the purposes of promotion ?

Answered: 1 week ago

Question

Define promotion.

Answered: 1 week ago

Question

Write a note on transfer policy.

Answered: 1 week ago