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 @ $1.70 per tube)		$3.40
Direct labor (1 hour @ $32 per hour)		32.00
Variable overhead (1 hour @ $7.00 per hour)		7.00
Fixed overhead (1 hour @ $13.00 per hour)		13.00
Total standard cost per test		$55.40

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 1,300 tests were conducted, resulted in the following.

Direct materials (2,730 test tubes)		$4,368
Direct labor (1,339 hours)		41,509
Variable overhead		8,580
Fixed overhead		16,211

Monthly budgeted fixed overhead is $18,460. Revenues for the month were $84,500, and selling and administrative expenses were $3,600.

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

Materials price variance		$		UnfavorableFavorableNeither favorable nor unfavorable
Materials quantity variance		$		UnfavorableFavorableNeither favorable nor unfavorable
Labor price variance		$		UnfavorableNeither favorable nor unfavorableFavorable
Labor quantity variance		$		Neither favorable nor unfavorableFavorableUnfavorable

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Compute the total overhead variance.

Total Overhead variance

$Type your answer here

Choose your answer here UnfavorableFavorableNeither favorable nor unfavorable

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Prepare an income statement for management.

HART LABS, INC. Income Statement For the Month Ended November 30, 2020November 30, 2020For the Year Ended November 30, 2020
					$
DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances
DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances
		$	UnfavorableNeither favorable nor unfavorableFavorable
			FavorableNeither favorable nor unfavorableUnfavorable
			Neither favorable nor unfavorableFavorableUnfavorable
			Neither favorable nor unfavorableUnfavorableFavorable
			FavorableUnfavorableNeither favorable nor unfavorable
DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances			Neither favorable nor unfavorableFavorableUnfavorable
DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances
DividendsExpensesGross Profit (Actual)Gross Profit (at Standard)Net Income / (Loss)RevenuesTotal ExpensesTotal RevenuesTotal VarianceVariances					$