Mare Goudreau. administrator of CSoarwater Hospital, Was puzzled by the prior month's reports. 'Every month, it's anyone's guoss wtrether the Lab wilf show a profit of a loss Perhaps the only answer is to increase our lab fees again. "We can',' replied Rhoda Groves, the controler. There are stil a iot of complaints about the last increase, particularty from the insurance companies and government health units They're now paying only about 81% of what we bili. Im beginning to think the problem is on the cost side ". To debermine if the Clearwater lab costs are in line with those of other hospital labs, Goudreau has ashed you bo evaluate the costs for the past month Groves has provided you With the following information: a. Two basio types of tests are performed in the lab-5mears and blood testis. During the past month, 2,700 smears and 660 blood tests were performed in the iab b. Small giass plates are used in both types of tests. During the past month, the hospial purchased 16.000 plates at a cost of $31,360. This cost is net of a 2%5 purchase discount. A tolal of 1,600 of these plotes were unused at the end of the menthy no plates were on hand at the beginning of the month. c. During the past month, 1,400 hours of labour time were used in performing sinears and blood tests. The cost of this labour time was 517,990,00. d. The lab's varable overhead cost last month totalled $4,950 6. Foxed overhead cost last month totallod $8,500 Claarwater Hosptal has never used standard costs. By searching indusiry literature, however, you have determined the teliowng natoonide averages for hospital labs Plates: Three platos are required per lab tost. These plates cost $2.00 each and are claposed of after the tost is comploted Labour: Each smear should require 03 hours to complete, and each blood test ahould roquire of ander the tost is comploted. denominator activity lovel of 1,000 hours per month Required: 1. Computo the materials price variance for the plates purchased last month, and compute a materials quantity variance for the plates used last month. (lindicate the effect of each variance by solecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance), 2.a. Conpute a labour rate variance and a labour efficioncy variance for the lab findicate the eflect of each yariance by selecting " F " for favorable, "I" for unfevorable, end. "Nonie" for no effect (lie., zero variance). Do not round intermediate calculation and renind your final answers to 1 decimal ptace.) 2.b. This part of the question is not part of your Connect assignment for ne effect (i.e. zuro variance)]. 4. Cornpute the fixed overheod budget and volume vanances. (Indicate the effect of each variance by selecting "F" foc favorable, "U" for unfavorable, and "None" for no effect (i.e. zero variance). Mare Goudreau. administrator of CSoarwater Hospital, Was puzzled by the prior month's reports. 'Every month, it's anyone's guoss wtrether the Lab wilf show a profit of a loss Perhaps the only answer is to increase our lab fees again. "We can',' replied Rhoda Groves, the controler. There are stil a iot of complaints about the last increase, particularty from the insurance companies and government health units They're now paying only about 81% of what we bili. Im beginning to think the problem is on the cost side ". To debermine if the Clearwater lab costs are in line with those of other hospital labs, Goudreau has ashed you bo evaluate the costs for the past month Groves has provided you With the following information: a. Two basio types of tests are performed in the lab-5mears and blood testis. During the past month, 2,700 smears and 660 blood tests were performed in the iab b. Small giass plates are used in both types of tests. During the past month, the hospial purchased 16.000 plates at a cost of $31,360. This cost is net of a 2%5 purchase discount. A tolal of 1,600 of these plotes were unused at the end of the menthy no plates were on hand at the beginning of the month. c. During the past month, 1,400 hours of labour time were used in performing sinears and blood tests. The cost of this labour time was 517,990,00. d. The lab's varable overhead cost last month totalled $4,950 6. Foxed overhead cost last month totallod $8,500 Claarwater Hosptal has never used standard costs. By searching indusiry literature, however, you have determined the teliowng natoonide averages for hospital labs Plates: Three platos are required per lab tost. These plates cost $2.00 each and are claposed of after the tost is comploted Labour: Each smear should require 03 hours to complete, and each blood test ahould roquire of ander the tost is comploted. denominator activity lovel of 1,000 hours per month Required: 1. Computo the materials price variance for the plates purchased last month, and compute a materials quantity variance for the plates used last month. (lindicate the effect of each variance by solecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance), 2.a. Conpute a labour rate variance and a labour efficioncy variance for the lab findicate the eflect of each yariance by selecting " F " for favorable, "I" for unfevorable, end. "Nonie" for no effect (lie., zero variance). Do not round intermediate calculation and renind your final answers to 1 decimal ptace.) 2.b. This part of the question is not part of your Connect assignment for ne effect (i.e. zuro variance)]. 4. Cornpute the fixed overheod budget and volume vanances. (Indicate the effect of each variance by selecting "F" foc favorable, "U" for unfavorable, and "None" for no effect (i.e. zero variance)