ADMN3021 LAS 04 Chap 10) Check my work 2 32 port Marc Goudreau, administ Mor of Clearwater Hospital, was pursled by the prior month's reports. "Every month, anyone's guess whether the lab will show a profit or a loss. Perhaps the only answer is to increase our ab fees again "We can't replied Rhoda Groves, the controller 'There are still a lot of complaints about the last increase particularly from the insurance companies and government health units. They're now paying only about 87% of what we bil I'm beginning to think the problem is on the cost side To determine if the Clearwater lab costs are in line with those of other hospital labs, Goudreau has asked you to evaluate the costs for the past month. Groves has provided you with the following information Neces a. Two basic types of tests are performed in the lab--smears and blood tests. During the past month, 2.700 smears and 660 blood tests were performed in the lab. b. Smail glass plates are used in both types of tests. During the past month, the deptal purchased 16,000 plates at a cost of $31,360 This cost is net of a 2% purchase discount. A total of 1.600 of these plates were unused at the end of the month no plates were on hand at the beginning of the month During the past month. 1400 hours of labour time were used in performing smears and blood tests. The cost of this lobour time was $17.990,00 d. The lab's variable overhead cost last month totalled $4,950 e. Fixed overhead cost last month totalled $8,500 Clearwater Hospital has never used standard costs. By searching industry Iterature, however you have determined the following nationwide averages for hospital labs: Plates Three plates are required per lab test. These plates cout $2.00 sach and are disposed of are the tast completed Labour. Each smear should require 0.5 hours to complete, and each blood test should require 0.6 tours to complete the average cost of this labio 515 per hour. Overhead roverhead coat is sed on direct labour-hours. The average rate of variable overhead is 53 per hour. The average rate of fixed overhead is $i per hour. These rates are based on a denominator activity level of 1,000 hos per month Check my work 2 32 Don Plates the plates are required per lab test. These platea cot 12.00 each and are disposed of atter the test completed Labour Fach smear should require 0.5 hours to complete, and each blood test should require 0:6 hours to complete. The average cost of thin lab Li 515 per hour weredOverhead coat is based on direct labour-hours. The average rate of variable wheat is per hour. The average rate of timed overhead is 18 per hour. These rates are based on a denominator civity level of 1,00 hours per month. Required: 1. Compute the materiais price variance for the places purchased last month, and computea materials quantity wariance for the plates used last month (Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect (t.e., zero variance) sed ebook Materials pcence Material quality viance Reference 2-a. Compute a labour rate variance and a labour efficiency variance for the lab indicate the effect of each variance by selecting "F" for favorable, "Ufor unfavorable, and "None" for no effect ... zero variance). Do not round intermediate calculation and round your final answers to 1 decimal place.) Labour avance Hele 2 2-a. Compute a labour rate variance and a labour efficiency variance for the lab indicate the effect of each variance by acting for favorable, "U" for unfavorable, and "None for no effect i.e. rere variance). Do not found intermediate calculation and round your final answers to 1 decimal place.) 32 pointe Sloved Labout tato variance Labour efficiency variance Bocs References 2.b. This part of the question is not part of your Connect assignment 3-a. Compute the variable overhead spending and efficiency variances, (Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effectie.. zero variance) Variable overhead spending variance Variable overhead officiency variance 2 Chaayaar Variable overhead officiency verance 32 points too Hafrances 3-b. This part of the question is not part of your connect assignment 4. Compute the fixed overhead budget and volume variances. Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effectie, zero variance) Food overhead budget variante Fixed overhead volume variance