John Fleming, chlef administrator for Valley View Hospitat, is concerned about the costs for tosts in the hospital's lab Charges for lab tests are consistently higher at Valley View than at other hospitals and heve cesulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments recelved trom insurance companies and govemmental units have not been high enough to cover lab costs Me Fleming has asked you to evaluate costs in the hospitars tob for the past month. The following inflocmation is avalable: a. Two types of tests are performed in the lab-blood tests and smears. Duning the past month, 550 blood tests and 2,600 smears were performed in the lab. b. Small plass plates are used in both types of tests. During the past month, the hospltal purchastod to, o00 plates at a cost of $49,400.1,600 of these plates were unused at the end of the monthy 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, howevec, you have determined the following nationwide, averages for hospital labs: Plates: Three plates are required per lab test. These plates cost 54.00 each and are disposed of aher 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 hout. Overhead: Overthead cost is based on direct labor hours. The average rate for variable overhead is $6.70 per hout. Required: 1. Compute a materials price variance for the plates purchased last month and a masertals quantity vaniance 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 variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and the labor cfficiency 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.) Chavos for lab terts ore consisteritly higher at Valley view than at other hospitalc and hove resuled in many compinints. Also; becesse of strict regulations on amounts reimbursed for lab tests, payments recelived from insurance Mr. Fleming has asked you to evaluate costs in the hospitars tab for the past month The following information is malablo: a. Two types of teits are performed in the isb-blood tests and smears. During the past month, 550 blood tests and 2600 smears were performed in the lab. b. Simall glass piates are used in both bypes of tests. During the past month, the hospital purchased 13.000 olotes at a cast of $49,400.1,600 of these plates were unused at the end of the moethy no plates were on hand at the beginning of the month c. During the past month, 1600 hours of labor lime were recorded in the lab at a cost of 516,960 . d. The linbls variable overhead cost list month totaled $11520 Valey View Hospital has never used standard costs, By searching industry literature, however, you have determined the follawing nationwide averages for hospital labs: Pater: Three piates are required per lab test. These plates cost $4.00 each and are disposed of afer the tent is completed: Labor: Each blood test should require 0.4 hours to complete, and each smear should require 0.20 hours to complete. The avermge cost of this lab time is $1160 per hour. Ovemead Overhead cost is based on direct laborthours. The average rate for variable cwerhood is $670 per hout. Required: 1. Compute a moterials price variance for the plstes purchased lost month and a maserials quantity variance for she platos used last month. 2. For tubor cost in the iab a. Compute a labor rote variance and a labor efficiency variance. b. In most hospitals, one-haif of the workers in the lab are senior technicians and one-twalf are assistants. In an effort to reduce costs, Valley View Hospital employs caly one-fourth senlor fechnicians 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 amy reiation between the variable oveihesd eficiency 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 labtr efficiency variance. (tndicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance). Input all amounts as positive values.) comperier ind oovernmental inds hive not been high esouph to cover lob costs. malinble: 2. foo smears were performed in the lab. D. 5 mar glass plates ace used in both types of bests. During the past moeth, the hospta purchased tzooo plates at a of the month. c. Durng the past mornth, 1600 hours of laber time wore recorded in the lab at a cost of 516.960 . Valiey View Hospitw has never uted standard costs ty searching industoy Merafure, however, you have determined the following nationwide everages for hospenil labs. Aatry Three plates are required per bat test. These plater cost $400 each and we disposed of after the tist is completed. labor Each blood teat thould require 0.4 Dours to cemplete, and eech smene should require 0.20 heurs to complete: The average cost of this lab time is 51460 per heut Aequiled: Aequed: Compute s materiabs orice variance for the plates purchased last month and a matenals cuarsity valiance for the pintes used last month. 2. For labor cost in the lat: a. Cormpute a labor rate variance and a iabor efficiency variance. reduce costs, Valley View Hospital employs only one-fourth senior tectricians and three-fouths assistants Would you recommend that this palicy be continued? 3a compute the yariable owrhead rale and efficiency variances 36 . Is there any relation between the varable owethedd einciency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Compute the veriable averhead rate and efficiency variances. (Indscate the effect of each variance by selecting "F" for favorable, "U" for unfavarable, and "Norfe" for no effect (Le., tero vartance), Input all amounts as positive values.) John Fleming, chlef administrator for Valley View Hospitat, is concerned about the costs for tosts in the hospital's lab Charges for lab tests are consistently higher at Valley View than at other hospitals and heve cesulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments recelved trom insurance companies and govemmental units have not been high enough to cover lab costs Me Fleming has asked you to evaluate costs in the hospitars tob for the past month. The following inflocmation is avalable: a. Two types of tests are performed in the lab-blood tests and smears. Duning the past month, 550 blood tests and 2,600 smears were performed in the lab. b. Small plass plates are used in both types of tests. During the past month, the hospltal purchastod to, o00 plates at a cost of $49,400.1,600 of these plates were unused at the end of the monthy 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, howevec, you have determined the following nationwide, averages for hospital labs: Plates: Three plates are required per lab test. These plates cost 54.00 each and are disposed of aher 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 hout. Overhead: Overthead cost is based on direct labor hours. The average rate for variable overhead is $6.70 per hout. Required: 1. Compute a materials price variance for the plates purchased last month and a masertals quantity vaniance 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 variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and the labor cfficiency 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.) Chavos for lab terts ore consisteritly higher at Valley view than at other hospitalc and hove resuled in many compinints. Also; becesse of strict regulations on amounts reimbursed for lab tests, payments recelived from insurance Mr. Fleming has asked you to evaluate costs in the hospitars tab for the past month The following information is malablo: a. Two types of teits are performed in the isb-blood tests and smears. During the past month, 550 blood tests and 2600 smears were performed in the lab. b. Simall glass piates are used in both bypes of tests. During the past month, the hospital purchased 13.000 olotes at a cast of $49,400.1,600 of these plates were unused at the end of the moethy no plates were on hand at the beginning of the month c. During the past month, 1600 hours of labor lime were recorded in the lab at a cost of 516,960 . d. The linbls variable overhead cost list month totaled $11520 Valey View Hospital has never used standard costs, By searching industry literature, however, you have determined the follawing nationwide averages for hospital labs: Pater: Three piates are required per lab test. These plates cost $4.00 each and are disposed of afer the tent is completed: Labor: Each blood test should require 0.4 hours to complete, and each smear should require 0.20 hours to complete. The avermge cost of this lab time is $1160 per hour. Ovemead Overhead cost is based on direct laborthours. The average rate for variable cwerhood is $670 per hout. Required: 1. Compute a moterials price variance for the plstes purchased lost month and a maserials quantity variance for she platos used last month. 2. For tubor cost in the iab a. Compute a labor rote variance and a labor efficiency variance. b. In most hospitals, one-haif of the workers in the lab are senior technicians and one-twalf are assistants. In an effort to reduce costs, Valley View Hospital employs caly one-fourth senlor fechnicians 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 amy reiation between the variable oveihesd eficiency 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 labtr efficiency variance. (tndicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance). Input all amounts as positive values.) comperier ind oovernmental inds hive not been high esouph to cover lob costs. malinble: 2. foo smears were performed in the lab. D. 5 mar glass plates ace used in both types of bests. During the past moeth, the hospta purchased tzooo plates at a of the month. c. Durng the past mornth, 1600 hours of laber time wore recorded in the lab at a cost of 516.960 . Valiey View Hospitw has never uted standard costs ty searching industoy Merafure, however, you have determined the following nationwide everages for hospenil labs. Aatry Three plates are required per bat test. These plater cost $400 each and we disposed of after the tist is completed. labor Each blood teat thould require 0.4 Dours to cemplete, and eech smene should require 0.20 heurs to complete: The average cost of this lab time is 51460 per heut Aequiled: Aequed: Compute s materiabs orice variance for the plates purchased last month and a matenals cuarsity valiance for the pintes used last month. 2. For labor cost in the lat: a. Cormpute a labor rate variance and a iabor efficiency variance. reduce costs, Valley View Hospital employs only one-fourth senior tectricians and three-fouths assistants Would you recommend that this palicy be continued? 3a compute the yariable owrhead rale and efficiency variances 36 . Is there any relation between the varable owethedd einciency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Compute the veriable averhead rate and efficiency variances. (Indscate the effect of each variance by selecting "F" for favorable, "U" for unfavarable, and "Norfe" for no effect (Le., tero vartance), Input all amounts as positive values.)