For labor cost in the lab: Compute a labor rate variance and a labor efficiency variance. in the hospital, one half of the workers in the lab are senior technicians and one-fourth senior technicians and three-fourths assistants. Would you recommended that this policy be continued? Explain. Compute the variable overhead rate and efficiency variances. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Explain. Koontz company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May. The production superintendent was pleased when he saw this report and commented: "This $0.08 excess cost is well within the 2 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product. Actual production for the month was 12,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There was no beginning or ending inventories off materials. Compute the following variances for may: Materials price and quantity variances. Labor rate and efficiency variances. Variable overhead rate and efficiency variances. How much of the $0.08 excess unit cost is traceable to each of the variances computed in (I) above. How much of the $0.08 excess unit cost is traceable to apparent inefficient use of labor time? Do you agree that the excess unit cost is not of concern