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 rembursed for tabs 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' 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 mont, 400 blood tests and 2,400 smears were performed in the lab b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 12,000 plates at a cost of $37.440. 1,400 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, 1400 hours of labor time were recorded in the lab at a cost of $14700 d. The tab's vantable overhead cost last month totaled 59.800. Volley View Hospitat has never used standard costs By searching industry merature, however, you have determined the following nationwide averages for hospital sbs: Plates. Three plates are required per lab test. These plates cost $325 each and are disposed or 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 tab ime is 511 40 per hour Overhead Overhead cost is based on direct lobor-hours. The average robe for variable overned $650 per hour Requtred: 1. Comoute a materials price variance for me plates purchased last month and a materiais quantny variance for the bites used last month 2 For labor cost in the lab. a computea laborate variance and a labor efficiency variance Din most hospitals, one half of the workers in the inbrecenior technicians and one of rectants in an effort to reduce costs Volley View Hostal employs only one fourth senior technicians and three fourths assistants. Would you recommend that the policy be continued 3- Compute the variable overhead rate and efficiency variances 3-t is there any relation between the variable overhead eiciency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. as 2A HJA R30 Computea materials price variance for the plates purchased last month and materials quantity van for the plates used est month (Indicate the effect of chance to selecting for favorable for favorable and fem To act amounts aspective Natas Natascostante RA :D e here to search 0 b. Small glass plates are used in both types of tests. During the past month, the hosp 1.400 of these plates were unused at the end of the month, no plates were on han c. During the past month, 1,400 hours of labor time were recorded in the lab at a cost d. The lab's variable overhead cost last month totaled $9,800 Valley View Hospital has never used standard costs. By searching industry literature, nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $3.25 each and are dis Labor. Each blood test should require 0.4 hours to complete, and each smear should re cost of this lab time is $11.40 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variable Required: 1 Compute a materials price variance for the plates purchased last month and a material month 2. For labor cost in the lab: a Compute a labor rate vanance and a labor efficiency variance b. In most hospitals, one-half of the workers in the lab are senior technicians and one halm Valley View Hospital employs only one-fourth senior technicians and three-fourths assista be conunued? 3-a. Compute the variable overhead rote and efficiency variances 3-6. Is there any relation between the variable overhead efficiency variance and the labor Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Reg 3A Reg 38 For labor cost in the lab, Compute a labor rate variance and a labor efficiency variance indicat by selecting for favorable for unfavorable, and more for no effect tetovarande) La revance Labor efficiency and Type here to search o a. Two types of tests are performed in the lab-blood tests and smears. During the past mo were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital pu 1,400 of these plates were unused at the end of the month; no plates were on hand at th c During the past month, 1,400 hours of labor time were recorded in the lab at a cost of $10 d. The lab's variable overhead cost last month totaled $9,800. Valley View Hospital has never used standard costs. By searching Industry literature, howeve nationwide averages for hospital labs: Plates. Three plates are required per lab test. These plates cost $3.25 each and are disposec Labor. Each blood test should require 0.4 hours to complete, and each smear should require cost of this lab time is $11.40 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhe Required: 1 Compute a materials price variance for the plates purchased last month and a materials quai 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 tab ate senior technicians and one-half are Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants be continued 3- Compute the variable overhead rate and efficiency variances 3-6. Is there any relation between the variable overhead efficiency variance and the labor efficie Complete this question by entering your answers in the tabs below. Reg1 Reg 2A Reg 20 RAG 3A Rage In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistant costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants, that this policy be continued? Heg ype here to search Valley View Hospital has never used standard costs. By searching Industry literature nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $3.25 each and are Labor. Each blood test should require 0.4 hours to complete, and each smear should cost of this lab time is $11.40 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variat Required: 1. Compute a materials price variance for the plates purchased last month and a mate 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- Valley View Hospital employs only one-fourth senior technicians and three-fourths ass be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency varlance and the lat Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 20 Red 3A Reg 38 Compute the variable overhead rate and efficiency variances. (Indicate the effect of each v favorable, " for unfavorable, and "None" for no effect (le zero variance). Input all amour Variable overhead rate variance Variable overhead efficiency variance Ren 20 Rege Valley View Hospital has never used standard costs. By searching Industry nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $3.25 each Labor: Each blood test should require 0.4 hours to complete, and each sme cost of this lab time is $11.40 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate Required: 1. Compute a materials price variance for the plates purchased last month an month. 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency varlance. b. In most hospitals, one-half of the workers in the lab are senior technicians Valley View Hospital employs only one-fourth senior technicians and three-fo be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency varlance ar Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 3A Reg 38 Is there any relation between the variable overhead efficiency vanance and the lab- Yes No RA