John Fleming, chief administrator for a district hospital, is concerned about costs for tests in the hospital's lab. Fleming has asked you to evaluate costs for the past month. The following information is available: a. Basically, two types of tests are performed in the lab-blood tests and smears. During the past month, 3.240 blood tests and 4,320 smears were performed in the lab b Small glass plates are used in both types of tests. During the past month, the hospital purchased 21600 plates at a cost of $48,600. This cost is net of a 6% quantity discount 2160 of these plates were still on hand unused at the end of the month, there were no plates on hand at the beginning of the month During the past month, 1,950 hours of labour time were recorded in the lab. The cost of this labour time was $23,400 d. Variable overhead cost last month in the lab for utilities and supplies totalled $12.675 The hospital has never used standard costs. By searching industry literature, however you have determined the following nationwide averages for hospital labs ces platest Two plates are required per lab test. These plates cost $2,40 each and are disposed of after the test is completed Labour ach blood test should require 10 hour to complete, and each ser should require 0.15 hour to complete. The average cost of this lobties $14.00 per hour Overhead: Overhead cost is based on direct labour hours. The average rate for variable overhead is 55.40 per hour Fleming would like a complete analysis of the cost of plates, labour and overhead in the lab for the last month so that he can get to the root of the lab's cost problem Rania