price variance

Problem 10-12 (Algo) Variance Analysis in a Hospital (LO10-1, LO10-2, LO10-3) John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital's lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from Insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital's tab 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, 300 blood tests and 2.200 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 11.000 plates at a cost of $29.260. 1.200 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. 1.200 hours of labor time were recorded in the lab at a cost of $12,480 d. The lab's variable overhead cost last month totaled $8,160 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 $2.80 each and are disposed of after the test is completed, Labor. Each blood test should require 0.6 hours to complete, and each smear should require 0.30 hours to complete. The average cost of this lab time is $11.20 per hour Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $6.30 per hour Required: 1. Compute a materials price variance for the plotes purchased last month and a materials quantity variance for the plates used last A next/mapudex.hlm? con contextemel browser BlaunchUrl=https%253A252F%252Fims.mheducation.com%252Fmghmiddlewar%252Fmeprod. Virginia Tech Schol. Virginia DMV 4PwC Start Intem... Start intern - Summ... Virginia Community. Linden B Bed Bath & Beyond ACIS dard Costs and Variances Seved Help Exercise 10-2 (Algo) Direct Labor Variances [LO10-2] SkyChefs, Inc., prepares in-flight meals for a number of major alilines One of the company's products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 7200 of these meals using 3.500 direct labor hours. The company paldits direct labor workers a total of $31.500 for this work, or $9.00 per hour According to the standard cost card for this meal. It should require 0.50 direct labor-hours at a cost of $8.50 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 7.200 meals? 2. What is the standard labor cost allowed (SH SR) to prepare 7.200 meals? 3. What is the labor spending variance? 4 What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts os positive values. Do not round intermediate calculations.) Problem 10-12 (Algo) Variance Analysis in a Hospital (LO10-1, LO10-2, LO10-3) John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital's lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from Insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital's tab 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, 300 blood tests and 2.200 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 11.000 plates at a cost of $29.260. 1.200 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. 1.200 hours of labor time were recorded in the lab at a cost of $12,480 d. The lab's variable overhead cost last month totaled $8,160 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 $2.80 each and are disposed of after the test is completed, Labor. Each blood test should require 0.6 hours to complete, and each smear should require 0.30 hours to complete. The average cost of this lab time is $11.20 per hour Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $6.30 per hour Required: 1. Compute a materials price variance for the plotes purchased last month and a materials quantity variance for the plates used last A next/mapudex.hlm? con contextemel browser BlaunchUrl=https%253A252F%252Fims.mheducation.com%252Fmghmiddlewar%252Fmeprod. Virginia Tech Schol. Virginia DMV 4PwC Start Intem... Start intern - Summ... Virginia Community. Linden B Bed Bath & Beyond ACIS dard Costs and Variances Seved Help Exercise 10-2 (Algo) Direct Labor Variances [LO10-2] SkyChefs, Inc., prepares in-flight meals for a number of major alilines One of the company's products is grilled salmon with new potatoes and mixed vegetables. During the most recent week, the company prepared 7200 of these meals using 3.500 direct labor hours. The company paldits direct labor workers a total of $31.500 for this work, or $9.00 per hour According to the standard cost card for this meal. It should require 0.50 direct labor-hours at a cost of $8.50 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 7.200 meals? 2. What is the standard labor cost allowed (SH SR) to prepare 7.200 meals? 3. What is the labor spending variance? 4 What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts os positive values. Do not round intermediate calculations.)