John Fleming. Chief administrator for Valey View Hospital, is concerned about the costs for tests in the hospital's lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict. regulations on amounts reimbursed for lab tests, payments recelved from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospitar's lab for the past month. The following information is avallable: a. Two types of tests are performed in the lab-blood tests and smears. During the past month, 550 blood tests and 2.600 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 13,000 plates at a cost of $49.400. 1600 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, 1,600 hours of labor time were recorded in the lab at a cost of $16,960. d. The lab's variable overhead cost last month totaled $11,520. Valley View Hospital has never used standard costs. By searching industry Iterature, however, you have determined the following nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $4.00 each and are disposed of after the test is completed. Labar: Each blood test should require 0.4 hours to complete, and each smear should require 0.20 hours to complete. The average cost of this lab time is $1160 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $6.70 per hour. Dequired: 1. Compute a materials price variance for the plates purchased last month and a materiais quantily variance for the plates used last month. 2. For labor cost in the lab: a. Compuste a labor rate variance and a lobor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reducg.costs, Valley View Hospital employs only one-fourth senior technicions and three-fourths assistants. Would you recommend that this policy be continued? 3-. Compure the variable overhead rate and efficiency variances. 3 - . Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Compute a materials price variance for the plates purchased last month and a materials quanty variance for the plates used (i.e. rero variance), Input all amounts as positive values.) John Fleming, chief administrator for Valey View Hosplal, is concerned about the costs for tests in the hospitals lab. Charges for lab John Fieming. chief admistrator for Vaiey View Hosptat, is concerned about the costs for tests in the hosptals iab. Charges for regulations on amounts reimbursed for lab tests, psyments recelved from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fieming has asked you to evaluate costs in the hospitars lab for the past month. The following information is avallable: a. Two types of tests are performed in the lab-blood tests and smears. During the post month, 550 blood tests and 2.600 smears were performed in the lob. b. Small glass plates are used in both types of tests. During the past month, the hosphal purchased 13.000 plates at a cost of $49,400. 1,000 of these plates were unused at the end of the month, no pleses were on hand at the beginning of the month. c. During the past momth. 1600 hours of labor time were reconded in the lab at a cost of $16.950 d. The lab's variable overhead cost last month totaled $1.520. Voley View Hosptal has never used standard costs. By sebrching industry literature, howevec, you have determined the following nationvide averages for hosplal labs: Plates: Three plates are required per lab test. These plates cost $4.00 each end are disposed of after the test is completed. Labor, Eoch blood test should require 0.4 hours to complete. and each smear should require 0.20 hours to complete. The average cest of this lab time is $1160 per hour. Overhead. Overthead cost is based on direct labor hours. The average rate for wariable overhead is $670 per hour. Preulred: 1. Compute a maserials price varianse for the plases purchased last month and a muterials euantity variunce for the plates used last mionth. 2 For labor cost in the lab: a. Compute a labor rate variance and a labor etticiency variance. b. In most hotpitals, one half of the workers in the lab are senior techniclans and one-haif ase assistants. In an effort to reduce costs, Valiey View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the vafiable overhesd rate and efficiency variances. 3 b. Is there ary relation between the varlable overhesd etficiency voriance and the labor efficiency variance? Cemplete this question by entering your answers in the tabs below. values.-) John Fierring. chief admistrator for Valey View Hospital, is concerned about the costs for betts in the hospitars lab. Charges for lab tests are consistently higher at Valey Viev then ot other hospials and have cesulted in many complaints. Also, because of strict regulotons on amoures reimbursed for lab sets, payments recelved from insurance companies and governmencal units have not been high enough to cover lab costs Mr. Fleming has asked you to evaluate costs in the hospitals lab for the past month. The folowing infoemation is available: a. Two types of tests are performed in the lab-blocd tests and smears. During the pust month. 550 bicod tests and 2600 smears were pertorred in the isb. b. 5 mall glass pletes are used in both types of tests. During the past morth, the hospital purchased 13.000 plates at a cost of 549,400. 1600 of these plates were unused at the end of the month no plates are on hand al the beginning of the month. c. Duing the past mornh, 1600 hours of labor time were recorded in the lab at a cost of 316,960. d. The labs volatie overhead cost iatt month botaled 511.620. Valey View Hosptal has never used standard costs. By searching industry therabe, however, you have determined the followisg natiomwide averages for hosptal labs: Plates. Thre plates are requined per lab test. These plates cost 54.00 each and are ospoced of after the test is completed Lebor. Each bosod test should requive 0.4 hours to complete. and cach smear should reculre 020 hcurs to complete. The aversge cost of this lab time is $1160 per hour. Ouriheat Overhead cost is based on direct laborthours. The average rate for variable eveihead is 16.70 per hout. Beaulred: 1 Compute a meherias price variance tor the piates purchased last month and a materials cuantify variance foe the piates used last month. 2. For laber cost in we lat a Compute alebor rate variance and e lebor efficiency variance. be cominued? 3. Compute the varieble crethesd rate and effiency variances. that thin pelisy be centinued? John Fieming. chief administrator for Valley View Hospital, is concemed abeut the costs for tests in the hospits lab. Charges for lab tests are consistemy higher at Valley View than at other hospitals and have resulted in mary complains. Also, because of strict regulations on amounts reimbursed for lab tests, poyments feceived from insurance companies and governmental unts hove not been high enough to cover lab costs. N. Fieming has asked you to evaluate costs in the hospitars lab for the past mornh. The following information is avaliable: 2. Two bpes of tests are peformed in the lab-blood tests and smear. Ouring the post month, 550 blood teats and 2.600 smears were performed in the lab. b. Smal glass plates are used in both types of tests. During the past month, the hospital purchased 13.000 plates at a cost of 549.400 1600 of these plates were unused at the end of the montr no plates were on hand at the beginning of the month c. During the past month, t600 hours of labor time were recorded in the lab at a cost of $15.960. e. The labs variable overhed cost last month totaled 311520. Valiey View Hospital hes never used standard costs. by searching indasty leerature, howevec, you hwve determined the following nationwide overages for hospital labs: Plares. Three plates are requiled per iob test. These plates cost 5400 each and are cisposed of after the test is compieted. Labor: Each biood test should require 0.4 hours to complete, and each smear should require 020 hours to complete. The averbge cost of this lab tire is $1160 per hour. Overhead Overitead cost is based on drect labor-hours. The average rase for varable ovehead is 56.70 per hour. Eequired: b. in most hospals, one haif of the wokers in the lab are senior techrieians and one-hat are wslsests. In an effort to redace costs. valky View Hosplal employs ony one fourth senior technicians and three-fourths assistarts. Would you recommend that this policy 3e. Compute the valable overhtad rme and efficiency variances 30. is theie any reletion between the variable overhesd efficlency variance and the labor efficiency variance? Canplete this quetion by entering your anwwers is the tabs belon. John Fieming. chief administrator for Valley View Hospitat is concerned about the costs for tests in the hospital's lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests. payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mc. Fleming has asked you to evaluate costs in the hospitars lab for the past month. The following information is available: a. Two types of tests are performed in the lab-blood tests and smears. During the past month, 550 blood tests and 2.600 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 13.000 plates at a cost of $49.400. 1600 of these plates were unused at the end of the monthy no plates were on hand at the beginning of the month. c. During the past month, 1600 hours of labor time were recorded in the lab at a cost of $16,960. d. The lab's variable overhead cost last month totaled $11,520. Valley View Hospital has never used standard costs. By searching industry iterature, however, you have determined the following nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plotes cost $4.00 each and are disposed of after the test is completed. Labor: Each blood test should require 0.4 hours to complete, and each smear should require 0.20 hours to complete. The average cost of this lab time is $1160 per hout. Overhead Overhead cost is based on drect labor-hours. The average rate for variable overhead is $6.70 per hour. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. 2. For labor cost in the lab: a Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one haif of the workers in the lab ore senior technicians and one-haif are assistants. In an effort to reduce costs. Valey View Hospital employs only one fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-. Compute the variable overhead rate and efficlency variances 3-b. Is there amy relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Is there any relabion betwieen the variable overhead efficiency variance and the labor efficiency variance