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Please solve it asap John Fleming,chef administrator for a district hospital, is concerned about costs for tests in the hospital's lob Fleming has asked you
Please solve it asap
John Fleming,chef administrator for a district hospital, is concerned about costs for tests in the hospital's lob Fleming has asked you to evaluate costs for the past month. The following information is available: a. Basically, two types of tests are performed in the lab blood tests and smears. During the past month, 3,060 blood tests and 4080 smears were performed in the lab, b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 20.400 plates at a cost of $13,860 This cost is net of a 6% quantity discount 2.040 of these plates were still on hand unused at the end of the month there were no plates on hand at the beginning of the month c. During the past month, 1850 hours of labour time were recorded in the lab. The cost of this labour time was $22,015 a Variable overhead cost last month in the lab for utilities and supplies totalled $11655 The hospital has never used standard costs By searching industry literature, however you have determined the following nationwide averages for hospital labs 20 Platest Two plates are required per lab test. The plates cost $2.30 each and are disposed of after the test is completed tabour toch blood test should require 0.30 hour to complete, and each ar should require 0.15 hour to complete the wverage cost of the lab time is $14.00 per hour Overhead: Overhead cost is based on direct labour hours. The average rate for variable overhead 55,20 per hour Fleming would like a complete analysis of the cost of plates, labour, and overhead in the lab for the last month so that he can get to the root of the lab's cost problem Required: 1. 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 favourable, "U" for unfavourable, and "None" for no effectie, zero variance)) Materials price variance Materials quantity variance 2. For labour cost in the lab: o. Compute a labour rate variance and a labour efficiency variance. (Do not round intermediate calculations. Round "Efficiency variance" answer to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfovourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance b. This part of the question is not part of your Connect assignment 3-o. Compute the variable overhead spending and efficiency variances (Do not round intermediate calculations. Round "Efficiency variance" answer to 2 decimal places. Indicate the effect of each variance by selecting "F" for fovourable, "U" for unfavourable. and "None" for no effect i.e., zero variance.).) Variable overhead spending variance Variable overhead efficiency variance Step by Step Solution
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