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 00 per tube) $2 00 Direct labor (1 hour $30 per hour) 30 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 $52 00 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 1,200 tests were conducted, resulted in the following Direct materials (2,520 test tubes) $2,268 Direct labor (1,236 hours) 34,608 Variable overhead 8,160 Fixed overhead 14,976 Monthly budgeted fixed overhead is $16,900 Revenues for the month were $79,200, and selling and administrative expenses were $4,000 HW Chapter 11 Question 4 of 4 2 38 3 E Compute the price and quantity variances for direct materials and direct labor Materials price variance $ 252 Favorable Materials quantity variance 120 Unfavorable Labor price variance 2472 Favorable Labor quantity variance $ 1080 i Unfavorable e Textbook and Media List of Accounts Attempts 1 of 5 used (b) Your answer is correct Compute the total overhead variance Total Overhead variance $ 864 Favorable Question 4 of 4 2 38 3 Prepare an income statement for management, HART LABS, INC Income Statement For the Month Ended November 30, 2020 Sales Revenue Materials Price Variance Favorable Labor Price Variance Favorable Overhead Variance Favorable Unfavorable Unfavorable Favorable Net Income (Loss)

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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

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 @ $1.00 per tube)		$2.00
Direct labor (1 hour @ $30 per hour)		30.00
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		$52.00

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 1,200 tests were conducted, resulted in the following.

Direct materials (2,520 test tubes)		$2,268
Direct labor (1,236 hours)		34,608
Variable overhead		8,160
Fixed overhead		14,976

Monthly budgeted fixed overhead is $16,900. Revenues for the month were $79,200, and selling and administrative expenses were $4,000.

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+ HW-Chapter 11 Question 4 of 4 2.38/3 E Compute the price and quantity variances for direct materials and direct labor. Materials price variance $ 252 Favorable Materials quantity variance 120 Unfavorable Labor price variance 2472 Favorable Labor quantity variance $ 1080 i Unfavorable e Textbook and Media List of Accounts Attempts: 1 of 5 used (b) Your answer is correct. Compute the total overhead variance. Total Overhead variance $ 864 Favorable Question 4 of 4 2.38/3 Prepare an income statement for management, HART LABS, INC. Income Statement For the Month Ended November 30, 2020 Sales Revenue Materials Price Variance Favorable Labor Price Variance Favorable Overhead Variance Favorable Unfavorable Unfavorable Favorable Net Income /(Loss)