3 John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital's lab. Charges for lab tests are consistently higher at Valley View then 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 evaluate costs in the hospital's lob for the past month. The following information is available: PRE 2. Two types of tests are performed in the lab-blood tests and smears. During the past month, 600 blood tests and 2,700 smears were performed in the lab. b. Smell gloss plates are used in both types of tests. During the past month, the hospital purchased 13,500 plotes et scost of $38,070. 1700 of these plates were unused at the end of the month; no plates were on c. During the past month, 1.700 hours of labor time were recorded in the lab sts cost of $13.105. d. The lab's veriable overhead cost last month totaled $12.410. Valley View Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital lobs: Plates: Three plates are required per lsb test. These plates cost $3.00 esch and are disposed of after the test is completed Labor: Esch blood test should require 0.6 hours to complete, and each smear should require 0.30 hours to complete. The average cost of this lab time is $11.70 per hour. Overead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $6.80 per hour Required: 1. Compute a materiais price variance for the plates purchased last month and a materials quantity verience for the plates used last month. 2. For labor cost in the lab: - Compute o labor rate variance and a labor efficiency variance. b. 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? 3-0. Compute the variable overheed rate and efficiency variances. 3-6. Is there any relstion between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. 2A R20 RA Rou Compute a materials price variance for the plates purchased last month and 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 (Le., zero variance). Input all amounts as positive values.) Material price variance Materiais quantity variance