Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's 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. $2.80 30.00 Direct materials (2 test tubes @ $1.40 per tube) Direct labor (1 hour @ $30 per hour) Variable overhead (1 hour @ $6.00 per hour) Fixed overhead (1 hour @ $12.00 per hour) Total standard cost per test 6.00 12.00 $50.80 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. $3,822 40,376 Direct materials (2,940 test tubes) Direct labor (1,442 hours) Variable overhead Fixed overhead 7,560 16,366 Monthly budgeted fixed overhead is $16,800. Revenues for the month were $91,000, and selling and administrative expenses were $3,600 Prepare an income statement for management. HART LABS, INC. Income Statement For the Month Ended November 30, 2020 Sales Revenue $ Favorable Favorable Overhead Variance DODIO Favorable Unfavorable Unfavorable Favorable Selling and Administrative Expenses Net Income /(Loss)