ACC – PROBLEM 10-43, UNIT COSTS, MULTIPLE PRODUCTS, VARIANCE ANALYSIS, SERVICE SETTING
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 2013 are:
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 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.
1. Prepare a standard cost sheet showing the unit cost per delivery for each type of patient. If required round your answers to one decimal place.
Standard Cost Sheet
Normal Patient Delivery
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