Opapiskaw Hospital has never used standard costing before. The company has provided the following information in...

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Opapiskaw Hospital has never used standard costing before. The company has provided the following information in anticipation of brining in standard costing: Required: There are 2 basic types of tests that are performed in the lab - smears and blood tests. During the past month, 3,000 smears and 600 blood tests were performed in the lab. Small glass plates are used in both types of tests. During the past month, the hospital purchased 30,000 plates at a cost of $78,570. The cost is net of a 3% discount. A total of 1,400 of these plates were unused at the end of the month; no plates were on hand at th beginning of the month. During the past month, 1,400 hours of labour time were used in performing smears and blood tests. The cost of this labour time was $11,900.00. The lab's variable overhead cost last month totalled $8,000. Industry research has been determined to assist in determining standards: Plates: 3 plates are requried per lab test. These plates cost $2.70 each and are thrown away after the test is completed. Labour: Each smear should require 0.3 hours to complete, and each blood test should require 0.6 hours to complete. The average cost of this lab time is $10 per hour. Overhead: Overhead cost is based on Direct Labour Hours. The average rate of Variable Overhead is $5 per hour. Show all your calculations in order to maximize on the marks. a) For the materials, calculate the material price variance and the materials quantity variance. Show all your calculations and ensure your final answer is described as U (unfavourable) vs F (favourable) - 6 marks. b) Describe what could cause the variances that you calculated in part a) - 2 marks. c) For the labour, calculate the labour rate variance and the labour efficiency variance. Show all your calculations and ensure your final answer is described as U (unfavourable) vs F (favourable) - 5 marks. Opapiskaw Hospital has never used standard costing before. The company has provided the following information in anticipation of brining in standard costing: Required: There are 2 basic types of tests that are performed in the lab - smears and blood tests. During the past month, 3,000 smears and 600 blood tests were performed in the lab. Small glass plates are used in both types of tests. During the past month, the hospital purchased 30,000 plates at a cost of $78,570. The cost is net of a 3% discount. A total of 1,400 of these plates were unused at the end of the month; no plates were on hand at th beginning of the month. During the past month, 1,400 hours of labour time were used in performing smears and blood tests. The cost of this labour time was $11,900.00. The lab's variable overhead cost last month totalled $8,000. Industry research has been determined to assist in determining standards: Plates: 3 plates are requried per lab test. These plates cost $2.70 each and are thrown away after the test is completed. Labour: Each smear should require 0.3 hours to complete, and each blood test should require 0.6 hours to complete. The average cost of this lab time is $10 per hour. Overhead: Overhead cost is based on Direct Labour Hours. The average rate of Variable Overhead is $5 per hour. Show all your calculations in order to maximize on the marks. a) For the materials, calculate the material price variance and the materials quantity variance. Show all your calculations and ensure your final answer is described as U (unfavourable) vs F (favourable) - 6 marks. b) Describe what could cause the variances that you calculated in part a) - 2 marks. c) For the labour, calculate the labour rate variance and the labour efficiency variance. Show all your calculations and ensure your final answer is described as U (unfavourable) vs F (favourable) - 5 marks.