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 @ $32 per hour)		32.00
Variable overhead (1 hour @ $6.00 per hour)		6.00
Fixed overhead (1 hour @ $13.00 per hour)		13.00
Total standard cost per test		$53.00

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 1,400 tests were conducted, resulted in the following.

Direct materials (2,940 test tubes)		$2,646
Direct labor (1,442 hours)		44,702
Variable overhead		8,512
Fixed overhead		16,968

Monthly budgeted fixed overhead is $17,030. Revenues for the month were $93,800, and selling and administrative expenses were $4,600.

(a) Your answer is correct. Compute the price and quantity variances for direct materials and direct labor. Materials price variance 294 Favorable Materials quantity variance T 140 Unfavorable Labor price variance 1442 T Favorable Labor quantity variance 1344 T Unfavorable SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Poi Attempts: (b) Your answer is correct. Compute the total overhead variance. Total Overhead variance - 1129 Total Overhead variance Favorable Favorable Your answer is partially correct. Try again. Prepare an income statement for management. HART LABS, INC. Income Statement For the Month Ended November 30, 2020 Sales Revenue 93800 Cost of Service Provided 60200 TGross Profit (at Standard) 33600 T Variances 1 294) Materials Price Variance Favorable Materials Quantity Variance 140| T Unfavorable TLabor Price Variance 1442 T Favorable X Labor Quantity Variance 1344 Unfavorable Toverhead Variance 1120 Favorable Total Variance : T Favorable 1372 TGross Profit (Actual) 34972 2 Selling and Administrative Expenses 4600 Net Income / (Loss) 30372