a) compute the price and quantity variances for direct materials and direct labor

b) compute the total overhead variance

c) prepare an income statement for management

d) provide possible explanations for each unfavorable variance

PRINTER VERSION BACK NEXT ASSIGNMENT RESOU RCES Problem 25-5A (Part Level Submission) ch Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test Esercise 25-12 Part Direct materials (2 test tubes S1.20 per tube) $2.40 Direct labor (1 hour e $31 per hour) 31.0 Variable overhead (1 hour $6.00 per hour) 6.0 Fixed overhead (1 hour (p $12.00 per hour) 12.00 Total standard cost per test S51.40 The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2017, when 1,200 tests were Review Results by conducted resulted in the following: Direct materials (2,448 test tubes) S2,595 Direct labor (1,236 hours) 37,080 Variable overhead 6,696 xed overhead 3,776 Monthly budgeted fixed overhead is $17,400. Revenues for the month were $79,200, and selling and administrative expenses were $4,800 (a) Compute the price and quantity variances for direct materials and direct labor (Round answers to o decimal places, e.g. 5,275.) Materials price variance D Materials quantity variance Labor price variance Labor quantity variance LINK Ta TExT LINK TO TEXT LINK TO TERT VIDEO: SIMILAR