Hi-Tek Labs performs steroid testing services for colleges and universities. Because the company works only with educational institutions, the price of each test is strictly regulated. Therefore, the costs incurred must be carefully monitored and controlled. Shown below are the standard costs for a typical test: $1.90 Direct materials (1 Petri dish at $1.90 per dish) Direct labour (0.50 hours at $20.70 per hour) Variable overhead (0.50 hours at $9 per hour) Fixed overhead (0.50 hours at $5 per hour) 10.35 4.50 2.50 Total standard cost per test $19.25 The lab does not maintain an inventory of Petri dishes. Therefore, the dishes purchased each month are used that month. Actual activity for the month of May 2020, when 2,600 tests were conducted, resulted in the following: Direct materials (2,630 dishes) $5,523 Direct labour (1,290 hours) 27,348 11,800 Variable overhead Fixed overhead 5,980 Monthly budgeted fixed overhead is $6,250. Revenues for the month were $55,400, and selling and administrative expenses were $1,900. (a) Calculate the price and quantity variances for direct materials and direct labour. Total materials variance $ Materials price variance Materials quantity variance Total labour variance $ Labour price variance $ Labour quantity variance $ Save for Later Attempts: 0 of 1 used Submit