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. Direct materials (2 test tubes @ $1.70 per tube) Direct labor (1 hour @ $30 per hour) Variable overhead (1 hour @ $7.00 per hour) Fixed overhead (1 hour @ $13.00 per hour) Total standard cost per test $3.40 30.00 7.00 13.00 $53.40 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 800 tests were conducted, resulted in the following. Direct materials (1,680 test tubes) Direct labor (832 hours) Variable overhead Fixed overhead $2,688 23,296 4,800 10,632 Monthly budgeted fixed overhead is $18,460. Revenues for the month were $53,600, and selling and administrative expenses were $3,700. Your answer is correct. Compute the price and quantity variances for direct materials and direct labor. Materials price variance 168 i Favorable 136 i Unfavorable Materials quantity variance $ Labor price variance $ Labor quantity variance 1664 1664 i Favorable Favorable 960 Unfavorable e Textbook and Media Prepare an income statement for management. HART LABS, INC. Income Statement