Assignment Exercise 18-1: Variance Analysis Greenview Hospital operated at 120% of normal capacity in two of its departments during the year. It operated 120% times 20,000 normal capacity direct labor nursing hours in routine services and it operated 120% times 20,000 normal capacity equipment hours in the laboratory. The lab allocates overhead by measuring minutes and hours the equipment is used; thus equipment hours. Assumptions For Routine Services Nursing: . 20,000 hours 3 1 20% 24,000 direct labor nursing hours. Budgeted Overhead at 24,000 hours $42,000 fixed plus $6,000 variable $48,000 total. Actual Overhead at 24,000 hours $42,000 fixed plus $7,000 variable $49,000 total Applied Overhead for 24,000 hours at $2.35 $56,400 For Laboratory: . 20,000 hours 3 12096 24,000 equipment hours. Budgeted Overhead at 24,000 hours $59,600 fixed plus $11,400 variable $71,000 total. Actual Overhead at 24,000 hours = $59,600 fixed plus $11,600 variable $71,200 total. Applied Overhead for 24,000 hours at $3.455 $82,920 Required 1. Set up a worksheet for applied overhead costs and volume variance with a column for Routine Services Nursing and a second column for Laboratory 2. Set up a worksheet for actual overhead costs and budget variance with a column for Routine Services Nursing and a second column for Laboratory 3. Set up a worksheet for volume variance and budget variance totaling net variance with a column for Routine Services Nursing and a second column for Laboratory. 4. Insert input data from the Assumptions. 5. Complete computations for all three worksheets