The maternity wing of the city hospital has two types of patients: normal and cesarean.

ACC – PROBLEM 10-43, UNIT COSTS, MULTIPLE PRODUCTS, VARIANCE ANALYSIS, SERVICE SETTING

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 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.
Required:

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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.

City Hospital

Standard Cost Sheet

Normal Patient Delivery

Standard Price
Standard Usage
Standard Cost

Direct materials
$

lbs.

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