. assignments 0 Fall City Hospital has an outpatient clinic. Jeffrey Harper, the hospital's chief administrator, is very concerned about cost control and has asked that performance reports be prepared that compare budgeted and actual amounts for medical assistants, clinic supplies, and lab tests. Past financial studies have shown that the cost of clinic supplies used is driven by the number of medical assistant labor hours worked, whereas lab tests are highly correlated with the number of patients served The following information is available for June: . Medical assistants Fall City's standard wage rate is $13 per hour, and each assistant is expected to spend 36 minutes with a patient. Assistants totaled 840 hours in helping the 1620 patients seen, at an average pay rate of $16.90 per hour Clinic supples The cost of clinic supplies used is budgeted at $10 per labor hour, and the actual cost of supplies used was $9,350 Lab tests Each patient is anticipated to have three lab tests, at an average budgeted cost of $66 per test. Actual lab tests for June cost $331,452 and averaged 3 3 per patient Required 1 Prepare a report that shows budgeted and actual costs for the 1,620 patients served during June. Compute the dfferences (variances) between these amounts and label them as favorable or unfavorable. 2. On the basis of your answer to requirement (1), determine whether Fall City has any significant problems with respect to clinic supplies and lab tests 3-a Determine the spending and efficiency variances for lab tests. (Hint In applying the overhead variance formulas, think of the number of tests as the activity level, and think of the cost per test as analogous to the variable overhead rate.) 3-b. Does it appeer that Fall City has any significant problems with the cost of its lab tests? Compare the lab test veriance computed in requirement (), a flexible-budget variance, with the sum of the variances in requirement (3-a).What is the relationship between the flexible budget varlance and the total of the individual Complete this question by entering your answers in the tabs below Required Required Required Required Required Prepare a report that shows budgeted and actual costs for the 1,620 patients served during June. as fevorable or unfavorable. (Indicate the effect of each variance by selecting Favorable" or "Unfavorable. Select "None" and enter "O" for no effect (I.e., zero variance). Do not round intermediate calculations.) Compute the differences (variances) between these amounts and label them Show less 1,620 1,820 Variance Medical ests lotal Required 2 > C Prev