John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospitals 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. Mr Fleming has asked you evaluate costs in the hospital's tab for the past month. The following information is available: 5 a. Two types of tests are performed in the tab-blood tests and smears. During the past month, 250 blood tests and 2100 smear were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 10,500 plates at a cost of $35.910. 1100 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, 1,100 hours of labor time were recorded in the lab at a cost of $11,385 d. The tob's variable overhead cost last month totaled $7.370, Volley View Hospital has never used standard costs. By searching industry terature, however you have determined the following nationwide averages for hospital labs Plates: Three plates are required per lab test. These plates cost $3.60 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 lob time is $11.10 per hour. Overhead Overhead cost is based on direct lobor-hours. The average rate for variable overhead is $6.20 per hour. Required: 1 Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used tast 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, anone fourth senin terhnicians and then the accidente Winstormmand that thic noir 9 Return to Gestion 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 tabor 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 continued? 3-a. Compute the variate overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead officiency variance and the labor efficiency variance? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Rea 2 Reg 28 Req3 Reg38 Compute a materials price variance for the plates purchased last month and a materiais quantity variance for the plates used last month (Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect De ero variance). Input all amounts as positive values.) Material price variance Materials quantity U Req2A) 9 Return to question 2.36 DOS Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used fost 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 lechnicians and three fourths assist. Would you recommend that this policy 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg1 Real Reg 28 Reg A Red For labor cost in the lab, Compute a labor rate variance and a labor ciency variance (Indicate the effect of each variance by selecting "F" for favorable. "Ufor unfavorable, and "None" for no effect .e. nero variance). Input all amounts positive values) Laborite variance Labor eficiency variance (Reg1 Req 20 ) 2.36 points 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-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Volley View Hospital employs only one-fourth senior 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 any relation between the variable overhead efficiency variance and the labor efficiency variance? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 Red 2A Reg 28 Ret 3A Red 30 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 (1. zero variance). Input all amounts as positive values.) Variable overhead rate variance Variable overhead efficiency variance