ED V 0 a Eezto.mheducation.com C; (.9 [I] + 33 Student - cambriancolle... it" Peer Evaluation - Group... a? Course: PRM-11'l1 - 202... eGRADES eGRADES m Question 5 - Comprehen... u Course Hero Comprehensive Assignment #2 0 Saved Help Save & Exit Submit 5 Problem #5 John Fleming, chiefadministrator for a district hospital, is concerned about costs for tests in the hospital's lab. Fleming has asked you to evaluate costs for the past month. The following information is available: 20 pm\" a. Basically, two types of tests are performed in the labblood tests and smears. During the past month, 2,340 blood tests and 3,120 smears were performed in the lab. b. Small glass plates are used in both types oftests. During the past month, the hospital purchased 15,600 plates at a cost of $35,100. This cost is net ofa 6% quantity discount. 1,560 of these plates were still on hand unused at the end ofthe month; there were no prim plates on hand at the beginning of the month. During the past month, 1,450 hours of labour time were recorded in the lab. The cost of this labour time was $17,400. Variable overhead cost last month in the lab for utilities and supplies totalled $9,425. P-D The hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs: Plates: Two plates are required per lab test. These plates cost $2.40 each and are disposed of after the test is completed. Labour: Each blood test should require 0.30 hour to complete, and each smear should require 0.15 hour to complete. The average cost of this lab time is $14.00 per hour. Overhead: Overhead cost is based on direct labour-hours. The average rate for variable overhead is $5.50 per hour. Fleming would like a complete analysis of the cost of plates, labour, and overhead in the lab for the last month so that he can get to the root ofthe lab's cost problem. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero variance).) Materials price variance Materials quantity variance % Hillv O ezto.mheducation.com C + 88 Student - cambriancolle... Peer Evaluation - Group... Course: PRM-1111 - 202... C eGRADES C eGRADES M Question 5 - Comprehen Course Hero Comprehensive Assignment #2 i Saved Help Save & Exit Submit 5 b. This part of the question is not part of your Connect assignment. 3-a. Compute the variable overhead spending and efficiency variances. (Do not round intermediate calculations. Round "Efficiency 20 variance" answer to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, points and "None" for no effect (i.e., zero variance.).) Print Variable overhead spending variance $ 1,450 U Variable overhead efficiency variance $ 1,540.00 U 3-b. Is there any relationship between the variable overhead efficiency variance and the labour efficiency variance? Yes O No Mc Graw Hill