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$.)921$

Nursing labor $($hrs$.)2\mathrm{.}55$

Standard price paid for direct materials $($per lb$.)$: $ $10\mathrm{.}00$

Standard rate for labor $($per hour$)$: $ $16\mathrm{.}00$

Variable overhead rate for ICU $($per hour$)$: $ $30\mathrm{.}00$

Fixed overhead rate for ICU $($per hour$)$: $ $40\mathrm{.}00$

$**$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\mathrm{.}50$

Direct materials for long$-$term patients $($in lbs$.)$: $165,000$ @ $$9\mathrm{.}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$

standard cost sheet for the short$-$term patient:

New York City Hospital

Standard Cost Sheet

For Short$-$term Patients, $2011$

Standard Price Standard Usage Standard Cost

Direct materials $ $10\mathrm{.}009$ $ $90\mathrm{.}00$

Direct labor $ $16\mathrm{.}002\mathrm{.}5$ $ $40\mathrm{.}00$

Variable overhead $ $30\mathrm{.}002\mathrm{.}5$ $ $75\mathrm{.}00$

Fixed overhead $ $40\mathrm{.}002\mathrm{.}5$ $ $100\mathrm{.}00$

Total standard unit cost $ $305\mathrm{.}00$

$\mathrm{<strong>Required:</strong>}$ 

 

$1.$ Complete a standard cost sheet for the long$-$term patient below.

New York City Hospital

Standard Cost Sheet

For Long$-$term Patients, $2011$

Standard Price Standard Usage Standard Cost

Direct materials $ $10\mathrm{.}0021$ $ $210\mathrm{.}00$

Direct labor $ $16\mathrm{.}005$ $ $80\mathrm{.}00$

Variable overhead $ $30\mathrm{.}005$ $ $150\mathrm{.}00$

Fixed overhead $ $40\mathrm{.}005$ $ $200\mathrm{.}00$

Total standard unit cost $ $640\mathrm{.}00$

$3.$ Compute the MUV for the long$-$term patients and state whether its favorable or not.

$ $1,649,790\mathrm{.}00$ Unfavorable

$4.$ Compute the LRV for the short$-$term patients and state whether its favorable or not.

$$417,150\mathrm{.}00$ Unfavorable

$5.$ Compute the LEV for the long$-$term patients and state whether it is favorable or unfavorable.

$ $647,920\mathrm{.}00$ Unfavorable

I need help on $3-5$ and figuring out whether they are favorable or unfavorable

Answer rating: 100% (QA)

Answer 3 Compute the Material Usage Variance MUV for LongTerm Patients The MUV formula is MUV Quantity Variance Actual Quantity Standard Quantity x St... View the full answer