John Fleming, chief administrator for Valley View Hospital, is concemed about the costs for tests in the hospital's lab. Charges for lab tests are consistently higher at Vallery 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 companles and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital'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, 1,200 blood tests and 3,800 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 19,000 plates at a cost of $62,510. 2,800 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, 2,800 hours of labor time were recorded in the lab at a cost of $31,360. d. The lab's variable overhead cost last month totaled $23,520. Valley View Hospital has never used standord 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 $3.50 each and are disposed of after the test is completed. Labor, Each biood test should require 0.8 hours to complete, and each smear should require 0.40 hours to complete. The average cost of this lab time is $12.00 per hour, Overhead: Overhead cost is based on direct labor-hours. The average rate for varlable overhead is $7.90 per hour. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantify variance for the plates used last nonth. 2. For labor cost in the loby a. Compute a labor rate variance and a labor efficiency variance b. In most hospitais, one-hoif of the workers in the lab are senior technicians and one-half are assistonts. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and threo-fourths assistants. Would you recommend that this policy be continued? 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 quantity variance for the plates used last month. (Indicate the effect of each variance by selecting " F " for favorable, " U " for unfavorable, and "None". for no effect ( (.e., zero variance). Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. For labor cost in the lab, Compute a labor rote variance and a labor efficiency variance. (Indicate the effect of each varlance by seiecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e, zero variance). Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valiey View Hospital employs only one-fourth senlor technicians and three-fourths assistants. Would you recommend that this policy be continued? Complete this question by entering your answers in the tabs below. Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for avorable, "u* for unfavorable, and "None" for no effect (i.e, zero variance), Input all amounts as positive values.) b. In most hospitais, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs Valley. View Hospital employs only one-fourth senkor technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there arry telation between the variable overhead efticlency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Is there any relation between the vartable overthead efficiency variance and the labor efficiency variance