26-05A a-c (Part Level Submission) (Video) Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because Therefore, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typ Direct materials (2 test tubes @ $1.90 per tube) Direct labor (1 hour @ $32 per hour) Variable overhead (1 hour @ $6.00 per hour) $3.80 32.00 6.00 12.00 $53.80 Fixed overhead (1 hour @ $12.00 per hour) Total standard cost per test The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. resulted in the following. Direct materials (2,940 test tubes) Direct labor (1,456 hours) Variable overhead Fixed overhead $5,292 45,136 8,316 15,960 Monthly budgeted fixed overhead is $17,880. Revenues for the month were $95,200, and selling and administrative expens (a) Your answer is correct. Compute the price and quantity variances for direct materials and direct labor. Materials price variance 294 Materials quantity variance 266 Unfavorable Labor price variance EL 1456 Labor quantity variance 1792 ce to arch overnmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. hown below are the standard costs for a typical test. purchased each month are used that month. Actual activity for the month of November 2020, when 1,400 tests were conducted, $95,200, and selling and administrative expenses were $4,600. (b) Your answer is correct. Compute the total overhead variance. Total Overhead variance 924 Favorable SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Income Statement (c) Prepare an income statement for management. HART LABS, INC. SHOW LIST OF ACCOUNTS LINK TO TEST search LINK TO FOXT LINK TO 100 NO Be DELL VIDEO