Mr. Fleming has asked you to evaluate costs in the hospital's lab for the past month. The following information is available: a. Two types of tests are performed in the lab-blood tests and smears. During the past month, 1100 blood tests and 3,600 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 18,000 plates at a cost of $58,140, 2,600 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, 2,600 hours of labor time were recorded in the lab at a cost of $28,860. d. The lab's variable overhead cost last month totaled $21,320. Valley View 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 $3,40 each and are disposed of after the test is completed. Labor: Each blood test should require 0.8 hours to complete, and each smear should require 0.40 hours to complete. The average cost of this lab time is $11.80 per hour Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $770 per hour Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency variance, b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half ore assistants. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Help Plates: Three plates are required per lab test. These plates cost $3.40 each and are disposed of after the test is completed Labor: Each blood test should require 0.8 hours to complete, and each smear should require 0.40 hours to complete. The average cost of this lab time is $11.80 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $770 per hour. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Reg 3B Reg 2B Reg 2A Reg 1 Req 3A Compute a materials price variance for the plates purchased last month and 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 (l.e., zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Reg 2A > VUJE U FUrect labor-hours. The average rate for variable overhead is $7.70 per hour Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Reg 28 Rea Reg 38 For labor cost in the lab, Compute a labor rate variance and a labor efficiency variance (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance Req1 Req 28 > CULL 33.40 each and are disposed of after the test is completed. DOUld require 0.8 hours to complete, and each smear should require 0.40 hours to complete. The average cost of this lab time is $11.80 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $770 per hour. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used tast month. 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants in an effort to reduce costs. Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 28 Reg 3A Reg 3B In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? Yes ONO Reg 3A ) Prev 1 of 6 !!! LUSI DAU each and are disposed of after the test is completed. Nu leyuire 0.8 hours to complete, and each smear should require 0.40 hours to complete. The average CUSt of this lab time is $11.80 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $770 per hour. Required: 1. Compute a materials price variance for the plates purchased last month and a materiais quantity variance for the plates used last month. 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half ore assistants. In an effort to reduce costs. Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Reg 3A Reg 38 Is there any relation between the variable overhead efficiency variance and the labor efficiency variance? Yes ONO