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 2017, when 1,300 tests were conducted, resulted in the following:

Direct materials (2,626 test tubes)		$3,992
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.

question: Prepare an income statement for management.

(a ) Your answer is correct Compute the price and quantity variances for direct materials and direct labor. (Round answers to 0 decimal places, e.g. 5,275.) Materials price variance Materials quantity variance Labor price variance Labor quantity variance 472 Favorable Unfavorable 1339 Favorable 1248 Unfavorable SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Attempts: 1 of 3 used (b) Your answer is correct Compute the total overhead variance Total Overhead variance 1209 Favorable SHOW SOLUTION SHOW