a. Two basic types of tests are performed in the labsmears and blood tests. During the...

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a. Two basic types of tests are performed in the labsmears and blood tests. During the past month, 3,000 smears and 900 blood tests were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 28,000 plates at a cost of $71,344. This cost is net of a 2% purchase discount. A total of 1,200 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. c. During the past month, 1,600 hours of labour time were used in performing smears and blood tests. The cost of this labour time was $22,000.00. d. The lab's variable overhead cost last month totalled $6,870. e. Fixed overhead cost last month totalled $9,000. Clearwater Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $2.60 each and are disposed of after the test is completed. Labour: Each smear should require 0.3 hours to complete, and each blood test should require 0.6 hours to complete. The average cost of this lab time is $15 per hour. Overhead: Overhead cost is based on direct labour-hours. The average rate of variable overhead is $4 per hour. The average rate of fixed overhead is $8 per hour. These rates are based on a denominator activity level of 1,000 hours per month. Required: 1. Compute the materials price variance for the plates purchased last month, and compute a materials quantity variance for the plates used last month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Materials price variance $ 0 F $ Materials quantity variance U (3,847,480) 2-a. Compute a labour rate variance and a labour efficiency variance for the lab. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculation and round your final answers to 1 decimal place.) Labour rate variance $ Labour efficiency variance 2,000.0 $ (240,000.0) > U F 2-b. This part of the question is not part of your Connect assignment. 3-a. Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance $ (47,000) U Variable overhead efficiency variance $ (640) U 3-b. This part of the question is not part of your Connect assignment. 3-b. This part of the question is not part of your Connect assignment. 4. Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance $ (1,000) U $ 4,800 F a. Two basic types of tests are performed in the labsmears and blood tests. During the past month, 3,000 smears and 900 blood tests were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 28,000 plates at a cost of $71,344. This cost is net of a 2% purchase discount. A total of 1,200 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. c. During the past month, 1,600 hours of labour time were used in performing smears and blood tests. The cost of this labour time was $22,000.00. d. The lab's variable overhead cost last month totalled $6,870. e. Fixed overhead cost last month totalled $9,000. Clearwater Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $2.60 each and are disposed of after the test is completed. Labour: Each smear should require 0.3 hours to complete, and each blood test should require 0.6 hours to complete. The average cost of this lab time is $15 per hour. Overhead: Overhead cost is based on direct labour-hours. The average rate of variable overhead is $4 per hour. The average rate of fixed overhead is $8 per hour. These rates are based on a denominator activity level of 1,000 hours per month. Required: 1. Compute the materials price variance for the plates purchased last month, and compute a materials quantity variance for the plates used last month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Materials price variance $ 0 F $ Materials quantity variance U (3,847,480) 2-a. Compute a labour rate variance and a labour efficiency variance for the lab. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculation and round your final answers to 1 decimal place.) Labour rate variance $ Labour efficiency variance 2,000.0 $ (240,000.0) > U F 2-b. This part of the question is not part of your Connect assignment. 3-a. Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance $ (47,000) U Variable overhead efficiency variance $ (640) U 3-b. This part of the question is not part of your Connect assignment. 3-b. This part of the question is not part of your Connect assignment. 4. Compute the fixed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Fixed overhead budget variance Fixed overhead volume variance $ (1,000) U $ 4,800 F