John Flemino, chief admenistrator for Vailey View Hospital, is concemod about the costs for tests in the hospital's lob, Charges for iab tests are consistenty higher at Valley View thon at other hospitals and have resulted in many complaints. Also, because of strict high enouph to cover lab costs. M. Flnming has asked you to cvahuse costs in the hospitals inb for the past month. The following information is avaloble: a. Tyro types of tests ate pefformed in the lab-blood tests and smears. Dunng the past month, 850 blood tests and 3,200 smears wro performed in the lab 2.200 of these plates were urused at the end of the month, no plates wete on hand at the beginning of the month C Curing the past month, 2,200 hours of labor time were recoroed in the lab at a cost af 523,980 d. The lab's variable overhead cost lats month totaled $17,160. Valiey View Hospital has nover Gsed standard costs, By sesching induswy literatute, however, you have determined the following cust of this lab time is 51140 per hout Overnedr Ovemead cost is based on dipct iabor nours The aworage rate for varable overhead is $730 per hour Aequlied: mant 2. For thbor cost in the iob be cocunued