Accounting Principles Homework Problems Chapter 25 3. Washington Company provides testing for mad cow disease. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Washington must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.46 per tube) Direct labor (1 hour @ $24 per hour) Variable overhead (1 hour @ $6 per hour) Fixed overhead (1hour @ $10 per hour) Total standard cost per test $ 2.92 24.00 6.00 10.00 $ 42.92 The lab does not maintain an inventory of test tubes. Therefore, the tubes purchased each month are used each month. Actual activity for the month of June 2020, when 1,500 tests were conducted, resulted in the following: Direct materials (3,050 test tubes) Direct labor (1,600 hours) Variable overhead Fixed overhead $ 4,209 36,800 7,400 15,000 Monthly budgeted fixed overhead is $14,000. Revenues for the month were $75,000, and selling and administrative expenses were $5,000. Instructions a. Compute the price and quantity variances for direct materials and direct labor. b. Compute the total overhead variance