MUUL) vuilalice Problem 2 Longview Hospital performs blood test in its laboratory. The following standards have been set for each blood test performed. Items Std. Price or Quantity Std. Rate or Hours Direct material 2 plates P 2.75 per plate Direct labor 0.2 hours P 15.00 per hour Variable overhead 0.2 hours P 7.00 per hour During May, the laboratory performed 1,500 blood tests. On May 1 there were no plates on hand; after a plate is used for a blood test it is discarded. Variable overhead is assigned to blood tests on the basis of direct labor hours. The following events occurred during May. a. 3,600 plates were purchased at a cost of P 9,450 b. 3,200 plates were used for blood tests C. 340 actual direct labor hours worked at cost of P 5,100 Requirements: Compute the following. (RPCPA) 1. the material price variance 2. the material quantity variance 3. the labor rate variance 4. the labor efficiency variance 5. the variable overhead efficiency variance