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 Valiey 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. Fieming has asked you to evaluate costs in the hospital's 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. 1,600 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 literature, however, you have determined the foliowing nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $4,00 each and Jre disposed of after the test is completed. Labor: Each blopd test shouid requlre 0.4 hours to complete, and each smeor shoud require 0.20 hours to complete. The average cost of this lab time is $11.60 per hour. Overheod Overneed cost is bssed on direct labor-hours. The average rate for varioble overhead is $6.70 per hour. Required: 1. Compute o materials price variance for the piotes purchosed last month and a materiais quantity variance for the plates used iast month. 2. For labor cost in the lab: a. Compute a laborrave voriance and o labor efficiency variance. B. In most hospltaig. one -haif of the workers in the lob ore senlor technicians ond one-haif sie assistants. in an effort to reduce costs. Valey View Hospital employs only one-fourth senlor technlelans and three-fourths ossistants. Would you recommend that this policy be sontinued? 3-t. Compite the varioble overhead rate and efficiency visionces. 3t. is there any relation betwieen the variable ovemead efficlency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs belowe. 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 (i,e, zero varlance). Input all amounts as positive values.) i-a. Compute the variable overhead rate and efficiency variances. -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. For labor cost in the lab, Compute a labor rate variance and a labor efficlency variance. (Indicate the effect of each variance by selecting " F " for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive yalues.) 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, Valley View Hospital employs only one-fourth senior 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 favorable, "U" for unfavorable, and "None" for no effect (lie., zero variance), Input all amounts as positive values there any relation between the variable overhead efficiency variance and the labor efficency variance? John Feming, 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 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 plares are used in both types of tests. During the past month, the hospital purchased 13,000 plates at a cost of $49,400. 1,600 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 literature, however, you have determined the following nationwide averages for hospital labs: Wlates: Three plates are required per lab test. These plates 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 $11.60 per hour. Overhead: Overhead cost is based on direct 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 iast month. 2. For labor cost in the lab: 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 teduce 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-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. 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 (i.e., zero variance). Input all amounts as positive values.) For labor cost in the lab, Compute a labor rate variance and a labor efficiency variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zere variance). Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. In most hospitals, one-haif 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? Complete this question by entering your answers in the tabs below. Compute the variable overhead rate and efficiency variances. (incicate the effect of each variance by selecting "F- forfavorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive valuen.) Is there any relation between the variable overhead efficiency variance and the labor efficiency variance