John Fleming, chief administrator for Valley 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 received 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 hospital's tab 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, 1,500 blood tests and 4 400 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 22,000 plates at a cost of $52,800 3,400 of these plates were unused at the end of the month, no plates were on hand at the beginning of the month During the past month, 3.400 hours of labor time were recorded in the lab at a cost of $39,100 d. The lab's variable overhead cost last month totaled $30,600 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 $2,50 each and are disposed of after the fest 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 lab time is $12.60 per hour Overhead Overhead cost is based on direct labor-hours. The average rate for variable overhead is $8.50 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: month Labor Each blood test should require 0.8 hours to complete, and each smear should require 040 hours to complete. The average cost of this lab time is $12.60 per hour Overhead Overhead cost is based on direct labor-hours. The average rate for variable overhead is $8.50 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 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 continued? 3-a Compute the variable overhead rate and efficiency variances. 3-5. Is there any relation between the vanable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 3A Reg 3 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 (Iezero variance). Input all amounts as positive values.) 3-b. Is there any relation between the variable overhead efficiency variance and the Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Req 3A Reg 3B Compute a materials price variance for the plates purchased last month and a materia last month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for (i.e., zero variance). Input all amounts as positive values.) + Materials price variance Materials quantity variance s Reg Req2A > 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and t Complete this question by entering your answers in the tabs below. Reg 1 Reg 24 Reg 2B Req Reg 3B For labor cost in the lab, Compute a labor rate variance and a labor efficiency varian by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zer values.) Labor rate variance Labor efficiency variance Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 3A Req 3B 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? lores ONO 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? 56.43 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 20 Reg 3A Reg 3B Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "O" for unfavorable, and "None" for no effect (le, zero variance). Input all amounts as positive values.) Variable overhead rate variance Variable overhead efficiency variance b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you red 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 variana Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 28 Reg 3 Req dhe Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Yes No