b.

Calculate the total overhead variance.

c.

Prepare an income statement for management.

d.

Provide possible explanations for each unfavourable variance.

PLEASE ANSWER ASAP!!!!

Hi-Tek Labs performs steroid testing services for colleges and universities. Because the company works only with educational institutions, the price of each test is strictly regulated. Therefore, the costs incurred must be carefully monitored and controlled. Shown below are the standard costs for a typical test: The lab does not maintain an inventory of Petri dishes. Therefore, the dishes purchased each month are used that month. Actual activity for the month of May 2020, when 2,200 tests were conducted, resulted in the following: Monthly budgeted fixed overhead is $5,250. Revenues for the month were $57,300, and selling and dministrative expenses were $2,100 (a) Calculate the price and quantity variances for direct materials and direct labour. \begin{tabular}{ll|l|l|} \hline Total materials variance & $ & \\ \hline Materials price variance \\ Materials quantity variance & $ & \\ \hline \end{tabular} \begin{tabular}{ll|l|l|} Total labour variance & $ & \\ Labour price variance & $ & \\ Labour quantity variance & $ & \\ \hline \end{tabular}