Question
Longview Hospital performs blood tests in its laboratory. The following standards have been set for each blood test performed: Standard quantity or hours Standard price
Longview Hospital performs blood tests in its laboratory. The following standards have been set for each blood test performed:
Standard quantity or hours | Standard price or Rate | |
Direct materials | 2.0 plates | $2.75 per plate |
Direct labor | 0.2 hours | $15.00 per hour |
Variable manufacturing overhead | 0.2 hours | $7.00 per hour |
During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct materials (plates) on hand; after a plate is used for a blood test it is discarded. Variable overhead is assigned to blood tests on the basis of standard direct labor-hours. The following events occurred during May:
3,600 plates were purchased for $9,540
3,200 plates were used for blood tests
340 actual direct labor-hours were worked at a cost of $5,550 The direct materials purchases variance is computed when the materials are purchased.
56/75.The materials price variance for May is: A. $360 F B. $360 U C. $740 F D. $740 U
57/76.The materials quantity variance for May is: A. $1,650 F B. $1,650 U C. $550 U D. $720 F
58/77.The labor rate variance for May is: A. $225 F B. $225 U C. $450 F D. $450 U
59/78.The labor efficiency variance for May is: A. $600 F B. $600 U C. $515 U D. $515 F
60/79.The variable overhead efficiency variance for May is A. $350 F B. $350 U C. $280 U D. $280 F
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