Hart 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, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test.

Direct materials (2 test tubes @ $1.40 per tube)		$2.80
Direct labor (1 hour @ $32 per hour)		32.00
Variable overhead (1 hour @ $6.00 per hour)		6.00
Fixed overhead (1 hour @ $12.00 per hour)		12.00
Total standard cost per test		$52.80

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 1,400 tests were conducted, resulted in the following.

Direct materials (2,940 test tubes)		$3,822
Direct labor (1,456 hours)		45,136
Variable overhead		8,316
Fixed overhead		15,792

Monthly budgeted fixed overhead is $17,520. Revenues for the month were $91,000, and selling and administrative expenses were $3,600.

(a)

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

Materials price variance		$		Neither favorable nor unfavorableFavorableUnfavorable
Materials quantity variance		$		Neither favorable nor unfavorableUnfavorableFavorable
Labor price variance		$		UnfavorableNeither favorable nor unfavorableFavorable
Labor quantity variance		$		FavorableNeither favorable nor unfavorableUnfavorable

b) Compute the total overhead variance

Total Overhead Variance: $

C) Prepare an income statement for management.