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 Rhoda Groves, the controllec. "There are still a lot of complaints about the last increase, particularly from the insurance companles and government health units. They're now paying only about 82% 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 hospltal labs, 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 tab-smears and blood tests. During the past month, 2,400 smears and 1,200 blood tests were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hosplal purchased 22,000 plates at a cost of $49,588. This cost is net of a 2% purchase discount. A total of 2,200 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, 1,500 hours of labour time were used in performing smears and blood tests. The cost of this labour time was $18,900.00. d. The lab's variable overhead cost last month totalled $7,120. e. Fixed overhead cost last month totalled \$6,000. Clearwater Hospital has never used standard costs. By searching industry literature, however, you have dotermined the following nationwide averoges for hospital labs: ptates: Three plates are required per lab test. These plates cost $2.30 ejch and are disposed of after the test is average cost of this tab tine is $15 per hour. overheadioverhead cost is based on direct labour-hours. The average rate of variable overhead is $4 per hour. The average rate of fixed overhead is $5 per hour. These rates are bosed on a denominator activity level of 1 , eate hours per month. Required: Required: 1. Compute the materials price variance for the plates purchased last month, and compute a materials quantity variance for the plates 1. Compute the materials price variance for the plates purchased last month, and compute a materiais quantity variance for the plates used last month. findleate the effect of each varfance by selecting "F* for favorabte, " U " for unfavorable, and "Hone" for no effect (l.e. zero varlance). Answer is complete but not entirely correct. 2-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.) Answer is complete but not entirely correct. 3-a. Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by sele favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Answer is complete but not entirely correct. 3-b. This part of the question is not part of your Connect assignment. 4. Compute the fixed overhead budget and volume variances. (fndleate the effect of each variance by selecting "F" 1 "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Answer is complete but not entirely correct