Prepare an income statement for management.

Problem 26-05A a-c (Part Level Submission) (Video) Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.00 per tube) Direct labor (1 hour @ $32 per hour) Variable overhead (1 hour @ $6.00 per hour) Fixed overhead (1 hour @ $13.00 per hour) Total standard cost per test $2.00 32.00 6.00 13.00 $53.00 The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2020, when 1,400 tests were conducted, resulted in the following. Direct materials (2,940 test tubes) Direct labor (1,442 hours) Variable overhead Fixed overhead $2,646 44,702 8,512 16,968 Monthly budgeted fixed overhead is $17,030. Revenues for the month were $93,800, and selling and administrative expenses were $4,600. (a) Your answer is correct. Compute the price and quantity variances for direct materials and direct labor. Materials price variance 294 Favorable Materials quantity variance 1 1 2941 7 Favorable 140] Unfavorable 1442 140 Labor price variance 1442 T Favorable Labor quantity variance 1344 Unfavorable (b) Your answer is correct. Compute the total overhead variance. Total Overhead variance 1120 1120] Favorable Favorable SI SUOMI TST OF ACCOUNTS SuomeOLTTOMSVANSWER HART LABS, INC. Income Statement