A 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 Material (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         Standard cost sheet -Short term patients                                        Standard Price             Standard Usage     Standard Cost Direct Materials                 $10                             9                              $ 90 Direct Labor                       $16                            2.5                            $40 Variable overhead              $30                            2.5                           $75 Fixed overhead                  $40                            2.5                          $100 Total standard unit cost                                                                      $305 1. Compute the MPV for the short-term patients and state whether its favorable or not

A 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 Material (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