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 @ $1.60 per tube)		$3.20
Direct labor (1 hour @ $31 per hour)		31.00
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		$52.20

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 1,000 tests were conducted, resulted in the following.

Direct materials (2,100 test tubes)		$3,150
Direct labor (1,050 hours)		31,500
Variable overhead		5,760
Fixed overhead		11,420

Monthly budgeted fixed overhead is $18,000. Revenues for the month were $68,000, and selling and administrative expenses were $4,900.

(a)

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

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

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(b)

Compute the total overhead variance.

Total Overhead variance

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Choose your answer here FavorableUnfavorableNeither favorable nor unfavorable