AGE-2021 CO Assignment Variance Analysis Save En 4 John Fleming. Chiet administrator for Valley View Hospitals.concemed about the costs for tests in the hospitals Charges for lob tests are consistently higher at Valley View than at other hospitals and have rested in many complaints. Also, because of strict regulations on amounts rembursed 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 use costs in the hospitais tab for the past month. The following information is available 30 Two types of tests are performed in the lab-blood tests and smears. During the past month, 1100 blood tests and 2.600 smeats were performed in the lab. Smags plates are used in both types of tests During the past month, the hospital purchased 10.000 plates at a cost of $59:40 2.600 of these plates were unused at the end of the month na plates were on hand at the beginning of the month During the past month 2.600 hours of Indoor time were recorded in me ish at a cost of 528 8GO d. The lab's vanable overhead cost last month to $21320 Valley View Hospital has never used standard costs. By searching industry literature, however you have determined the following nationwide averages for hospital Labs Pate: Three plates are required per lab test. These plates cost $3.40 nach and are disposed of her the test is completed Labor Each blood test should require 0.8 hours to complete, and each smear should require 0 40 hours to complete The average cost of this lab time is 511 80 per hour Overhead Overhead cont based on direct labor hours. The average rate for variatie overhead is 5770 per hour Required: 1 Computea materiais price variance for the plutes purchased last month and a materials Guantity variance for the plates used last month 2. For labor cost in the lab Computea labor rate variance and a labor efficiency variance in most hospitals, one half of the workers in the bare senior technicians and one-half are assistants in an effort to reduce costs Valley View Hospital employs only one fourth senior technicians and tree-fourth stants. Would you recommend that this polty be continued 3a. Compute the variable overhead rate and efficiency variances 36. Is there any relation between the variable overhead officiency variance and the labor efficiency variance? al Next HO 1 6 2 3 AN 5 6 2 W E R T Y U S D F G H J L C V B Z memand Command AGE-2021 CO Assignment Variance Analysis Save En 4 John Fleming. Chiet administrator for Valley View Hospitals.concemed about the costs for tests in the hospitals Charges for lob tests are consistently higher at Valley View than at other hospitals and have rested in many complaints. Also, because of strict regulations on amounts rembursed 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 use costs in the hospitais tab for the past month. The following information is available 30 Two types of tests are performed in the lab-blood tests and smears. During the past month, 1100 blood tests and 2.600 smeats were performed in the lab. Smags plates are used in both types of tests During the past month, the hospital purchased 10.000 plates at a cost of $59:40 2.600 of these plates were unused at the end of the month na plates were on hand at the beginning of the month During the past month 2.600 hours of Indoor time were recorded in me ish at a cost of 528 8GO d. The lab's vanable overhead cost last month to $21320 Valley View Hospital has never used standard costs. By searching industry literature, however you have determined the following nationwide averages for hospital Labs Pate: Three plates are required per lab test. These plates cost $3.40 nach and are disposed of her the test is completed Labor Each blood test should require 0.8 hours to complete, and each smear should require 0 40 hours to complete The average cost of this lab time is 511 80 per hour Overhead Overhead cont based on direct labor hours. The average rate for variatie overhead is 5770 per hour Required: 1 Computea materiais price variance for the plutes purchased last month and a materials Guantity variance for the plates used last month 2. For labor cost in the lab Computea labor rate variance and a labor efficiency variance in most hospitals, one half of the workers in the bare senior technicians and one-half are assistants in an effort to reduce costs Valley View Hospital employs only one fourth senior technicians and tree-fourth stants. Would you recommend that this polty be continued 3a. Compute the variable overhead rate and efficiency variances 36. Is there any relation between the variable overhead officiency variance and the labor efficiency variance? al Next HO 1 6 2 3 AN 5 6 2 W E R T Y U S D F G H J L C V B Z memand Command