Marc Goudreau, administrator of Clearwater Hospitai. was puzzied by the prior month's reports. \"Every month, it's anyone's guess whether the lab wilt show a prot or a loss. Perhaps the only answer is to Increase our lab fees again.\" \"We can't,\" replied Rhoda Groves. the controller. \"There are still a lot of complaints about the last increase, particularly from the insurance companies and government health units. They're now paying only about 8496 of what we bill. i'm beginning to think the problem is on the cost side.\" To determine if the Clearwater tab costs are in line with those of other hospital tabs. Goudreau has asked you to evaiuate the costs for the past month. Groves has provided you with the following information: a. Two basic types of tests are performed in the labsmears and blood tests. During the past month, 3,000 smears and 660 blood tests were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 14,000 plates at a cost of $40,740. This cost is net of a 3% purchase discount. A total of 2,000 of these plates were unused at the end of the month; no plates were on hand at the beginning ofthe month. c. During the past month. 1,600 hours of labour time were used in performing smears and blood tests. The cost of this labour time was $13,920.00. . The Iab's variable overhead cost last month totalled $8.800. Fixed overhead cost last month totalled $3,000. run. Clearwater Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs: PLates: Three plates are required per lab test. These plates cost $3.00 each and are disposed of after the test is completed. Labour: Each smear should require 0.3 hours to complete, and each blood test should require 8.6 hours to complete. The average cost of this lab time is $16 per hour. Overhead:0verhead cost is based on direct labour-hours. The average rate of variable overhead is $5 per hour. The average rate of fixed overhead is $6 per hour. These rates are based on a denominator activity level of 1,509 hours per month. Required: 1. Compute the materials price variance for the plates purchased last month, and compute 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).) Materials price variance Materials quantity variance2-a. Compute a labour rate variance and a labour efficiency variance for the lab. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculation and round your final answers to 1 decimal place.) Labour rate variance Labour efficiency variance2-b. This part of the question is not part of your Connect assignment. 3-a. Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance