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MC Qu. 79 Longview Hospital performs blood tests... Longview Hospital performs blood tests in its laboratory. The following standards have been set for each blood test performed: Standard Quantity or Hours Standard Price or Rate Direct materials 2.0 plates $2.75 per plate Direct labor $15.00 per hour 0.2 hours Variable overhead. 0.2 hours $7.00 per hour During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct materials plates) on hand; after a plate is used for a blood test it is discarded. Variable overhead is assigned to blood tests on the basis of standard direct labor-hours. The following events occurred during May 3.600 plates were purchased for $9,540 -3.200 plates were used for blood tests .340 actual direct labor-hours were worked at a cost of $5,550 The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for May is O $350 F O $350 O s2sou O $280 F