3. 45.00 points John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests. In the hospital's tab Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints Also because of strict regulations on amounts reimbursed for lab tests payments received from Insurance companies and governmental units have not been high enough to cover Lab costs Mr. Fleming has asked you to waliate costs in the hospital's lab for the past month. The following Information is available a. Two types of tests are performed in the lab blood tists and smears. During the past month 550 blood tests and 2,600 smears were performed in the lab. Small gass plates are used in both type of tots. During the past month the hospital purchased 13,000 plates at a cost of $49,400. 1,600 of these plates were unused at the end of the month, no places were on hand at the beginning of the month During the past month 1600 hours of labor time were recorded in the lab at a cost of $15,960 Valley View Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospitals Plato Three plotes are required par lab test. These plates cost $4.00 each and are disposed of atter the test is completed Each blood test should require 14 hours to complete and each or should require 0.20 hours to complete the average cost of this in time is $11 60 per hout Overhead Overhead cont is based on direct labor hours. The average rate for variable overhead is $6 70 Labor per hour Required 1 Computea materials price variance for the latest purchased last month and a materials quantity variance for the platou used last month (loput all amounts as positive values Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable and "None for no effect ( oro variance Material price van Materials buity variance 2. For labor cost in the lab. a. Compute a labor rate variance and a labor efficiency variance (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance).) Labor rate variance Labor efficiency variance In most hospitals one half of the workers in the lab are senior technicians and one-half are assistants in an effort to reduce costs. Valley View Hospital employs only one fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? Ye No 3a Compute the variable overhead rate and efficiency variances Input all amounts as positive values. Indicate the effect of each variance by selecting for favorable "U" for unfavorable, and "None for no effectie, zero variance) Variable overhead rate variance Variatie overhead licency valance