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John Fleming. chief administrator for Valley Vlew Hospital, is concerned about the costs for tests in the hospltat's lab. Charges for lab tests are consistently highet 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 recelved from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fieming has asked you to evaluate costs in the hospital's lab for the past month. The following information is awailable: a. Two types of tests are performed in the lab-blood tests and smears. During the past month. 350 blood tests and 2.300 smears were performed in the lab. b. Small glass plates are used in both types of tests. Duing the past month, the hospital purchased 11,500 plates at a cost of $27.025 1,300 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, 1,300 hours of Lobor time were recorded in the lab ot a cost of $13,585. d. The lab's variable overhead cost last month totaled $8,970. Valley View Hospital has never used standard costs. By seatching industry literature, however, you have determined the following nationwide averages for hospital labs Plates. Three plates are required per lab test. These plates cost $2.50 each and are disposed of atter the test is completed. Labor: Each 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 $1130 per hour. Overhead: Overhead cost is based on direct laborhours. The average rate for variable overhead is $6.40 pet hout, Required: 1. Compute a materials price variance for the plates purchased last month and a materiats quantity variance for the plates used last month 2 For labor cost in the lab: a Comnite a lahne rate varianre and a lahnreffirienru votanre Required: 1. Compute a materlals price varlance for the plates purchased last month and a materlals quantity variance for the plates used last month. 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one half of the workers in the lab are senior techniclans and one-half are assistants. In an effort to reduce costs. Valley View Hospital employs only one-fourth senior techniclans and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency vartances. 3.b. Is there any relation between the varlable overhead efficiency vatiance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. 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 "I "for favorable, "U" for untavorabie, and "None" for no effect (ie,, zero vartance). Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. For labor cost in the lab. Compute a labor rate variance and a labor efficlency variance. (Indicate the effect of each variancel) by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance), Input all amounts as positive 3-b. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. 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? Complete this question by entering your answers in the tabs below. Compute the variable overhead rate 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). Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance