Hi I do not understand how to answer this question, can you please solve the questions in the images below? Thanks
Marc Goudreau, administrator of Cleanrvater Hospital, was puzzled by the prior month's reports. \"Every month, it's anyone's guess whether the lab will show a prot or a loss. Perhaps the only answer is to increase our lab fees again." "We can't,\" replied Rhoda Groves, the controller. "There are still a lot of complaints about the last increase, particularly from the insurance companies and government health units. They're now paying only about 81% of what we bill. I'm beginning to think the problem is on the cost side.\" To determine if the Cleanlvater lab costs are in line with those of other hospital labs, Goudreau has asked you to evaluate the costs for the past month. Groves has provided you with the following information: a. Two basic types of tests are performed in the labsmears and blood tests. During the past month, 2,700 smears and 660 blood tests were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 16,000 plates at a cost of $31,360. This cost is net of a 2% purchase discount. A total of 1,600 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. c. During the past month, 1,400 hours of labourtime were used in performing smears and blood tests. The cost of this labour time was $17, 990. d. The lab' 5 variable overhead cost last month totalled $4, 950. e. Fixed overhead cost last month totalled $8, 500. CleanNater Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $2.00 each and are disposed of after the test is completed. Labour: Each smear should require 0.3 hours to complete, and each blood test should require 0.6 hours to complete. The average cost of this lab time is $15 per hour. Overhead: Overhead cost is based on direct labour-hours. The average rate of variable overhead is $3 per hour. The average rate of xed overhead is $8 per hour. These rates are based on a denominator activity level of 1,000 hours per month. Required: 1. Compute the materials price variance for the plates purchased last month, and compute a materials quantity variance for the plates used last month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the \"$" sign in your response.) P!\" Materials price variance $ 640 [ F G] Materials quantity variance $ (Click to select) c For labour cost in the lab: Compute a labour rate variance and a labour efciency variance. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Labour rate variance $ [ (Click to select) | Labour efficiency variance $ (Click to select) 3-a. Compute the variable overhead spending and efciency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance.). Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Variable overhead spending variance $ (Click to select) c Variable overhead efciency variance 51; (Click to select) c Compute the xed overhead budget and volume variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance.). Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Fixed overhead budget variance $ (Click to select) c Fixed overhead volume variance $ (Click to select) c
