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 @ $1.90 per tube) $3.80 Direct labor (1 hour @ $30 per hour) 30.00 Variable overhead (1 hour @ $7.00 per hour) 7.00 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 2017, when 1,100 tests were conducted, resulted in the following: Direct materials (2,222 test tubes) $3,933 Direct labor (1,155 hours) 33,495 Variable overhead 7,106 Fixed overhead 13,101 Monthly budgeted fixed overhead is $17,400. Revenues for the month were $73,700, and selling and administrative expenses were $4,500.

Problem 25-5A (Part Level Submission) Hart Labs nc, provides mad cow disease testing or both state and federal governmental agricultural agencies Because the company s customers are governmental agencies, prices are strict y regulated. Therefore, Hart Labs must constan?y monitor control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes$1.90 per tube) Direct labor (1 hour $30 per hour) Variable overhead (1 hour s7.00 per hour) Fixed overhead (1 hour $12.00 per hour) $3.80 30.00 7.00 12.00 52.80 Total standard cost per test The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actal activity for the month of November 2017, when 1,100 tests were conducted, resulted in the following: Direct materials (2,222 test tubes) Direct labor (1,155 hours) Variable overhead Fixed overhead $3,933 33,495 7,106 13,101 Monthly budgeted fixed overhead is $17,400. Revenues for the month were $73,700, and selling and administrative expenses were $4,500 Your answer is partially correct. Try again. Compute the price and quantity variances for direct materials and direct labor. (Round answers to O decimal places, e.g. 5,275.) Materials price variance Materals quantity variances Labor price variance Labor quantity variance 289 Favorable 2Unfavorable 1793 Favorable 1650 Unfavorable