Marc Goudreau, administrator of Clearwater Hospital, was puzzled by the prior month's reports. "Every month, it's anyone's guess whether the lab will show a profit or a loss. Perhaps the only answer is to increase our lab fees again "We can't replied Rhode 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 81% of what we bill. I'm beginning to think the problem is on the cost side." To determine if the Clearwater lab costs are in line with those of other hospital Inbs, Goudreau has asked you to evaluate the costs for the past month. Groves has provided you with the following information: a. Two basic types of tests are performed in the lab-smears and blood tests. During the past month. 2,800 smears and 1,500 blood tests were performed in the lab. D. Small glass plates are used in both types of tests. During the past month, the hospital purchased 14,000 plates at a cost of $25,536 This cost is net of a 4% purchase discount. A total of 1,400 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month During the past month, 1,900 hours of labour time were used in performing smears and blood tests. The cost of this labour time was $19.950.00 d. The lab's variable overhead cost last month totalled $5.980. e. Fixed overhead cost last month totalled $9,000 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 $1.50 each and are disposed of after the rest is completed Labour Each smear should require 9.3 hours to complete, and each blood test should require: 0.6 hours to complete. The average cost of this lab time is 512 per hour. Overhead: Overhead cost is based on direct labour hours. The average rate of variable overhead is 53 per hour. The average race of fixed overhead is 57 per hour. These rates are based on a denominator activity level of 1.250 hours per month Required: 1. Compute the materiais 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 (le., zero variance).) Materials price variance Materiais quantity variance 2-a. Compute a labour rate variance and a labour efficiency variance for the lab. (Indicate the effect of each variance by selecting "p 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 ploce.) Labour rate wanance Labour efficiency vanance 3-a. Compute the variable overhead spending and efficiency variances, indicate the effect of ench variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., rero variance)) Variable overhead spending variance Variable overhead efficiency variance 3-b. This part of the question is not part of your Connect assignment. 4. Compute the fixed overhead budget and volume variances. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e.. zero variance).) Fored overhead budget vanance Fored overhead volume Variance