Blossom Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the companys customers are governmental agencies, prices are strictly regulated. Therefore, Blossom Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test.

Direct materials (2 test tubes @ $1.70 per tube)		$3.40
Direct labor (1 hour @ $30 per hour)		30.00
Variable overhead (1 hour @ $7.00 per hour)		7.00
Fixed overhead (1 hour @ $13.00 per hour)		13.00
Total standard cost per test		$53.40

The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2020, when 800 tests were conducted, resulted in the following.

Direct materials (1,680 test tubes)		$2,688
Direct labor (832 hours)		23,296
Variable overhead		4,800
Fixed overhead		10,632

Monthly budgeted fixed overhead is $18,460. Revenues for the month were $53,600, and selling and administrative expenses were $3,700.

(a)

Compute the price and quantity variances for direct materials and direct labor.

Materials price variance		$		FavorableUnfavorableNeither favorable nor unfavorable
Materials quantity variance		$		UnfavorableFavorableNeither favorable nor unfavorable
Labor price variance		$		FavorableUnfavorableNeither favorable nor unfavorable
Labor quantity variance

B.) Compute the total overhead vareiance

C.) create income statement for mangament