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 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. Mt. Fleming has asked you to evaluate costs in the hospitals lab for the past month. The following information is available a. Two types of tests are performed in the labblood tests and smears. During the past month, 1,350 blood tests and 4100 smears. were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 20,500 plates at a cost of $59,040, 3,100 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, 3,100 hours of labor time were recorded in the lab at a cost of $35,185, d. The lab's variable overhead cost last month totaled $26,970, Valley View 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 $3.00 each and are disposed of after the test is completed Labor: Each blood test should require 0.8 hours to complete, and each smear should require 0.40 hours to complete. The average cost of this tab time is $12,30 per hout. Overhead Overhead cost is based on direct labor-hours. The average rate for variable overhead is $8.20 per hour. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantly 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-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 senior technicians and three-fourths assistants Would you recommend that this policy be 3a Compute the variable overhead rate and efficiency variances. 3-5. Is there any relation between the variable overhead efficiency variance and the tabor en ciency variance? Complete this question by entering your answers in the tabs below. Red Eq Haq 28 ROSA Med 30 Computea materias prie 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 or for unfave and Noofing errect (o variant). Input all amounts as positive values) 2460 Matrice variante Mala Guyana Cost of this a Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $8.20 per h Required: 1. Compute a materials price varlance for the plates purchased last month and a materials quantity variance fort month. 2. For labor cost In the lab: a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an ef Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recom be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-5. 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. Req Rola 2A Reg 28 Red 3A Reg 38 For labor cost in the lab, Compute a labor rate variance and a labor efficiency variance Indicate the effect of each var by selecting "F* for favorable, "U" for unfavorable, and "None for no effect zero variance). Input all amounts as p values.) 2.945 Laborrate variance Labor efficiency variance Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates us month. 2. For labor cost in the lab: a. Compute a labor rate variance and a labor 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 redu Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that th be continued? 3-a. Compute the variable overhead rate and efficiency variances 3-b. 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. Reg1 Req 2A Reg 28 Reg 3A Reg 38 Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect zera variance). Input all amounts as positive values Variable overhand rate variance Variable overhead efficiency variance