Problem 12.43A a-d (Part Level Submission) Under a contract with the provincial government, ChemLabs Ltd. analyzes the chemical and bacterial composition of well water in various municipalities in the interior of British Columbia. The contract price is $25.75 per test performed. The normal volume is 10,000 tests per month. Each test requires two testing kits, which have a standard price of $3.70 each. Direct labour to perform the test is 10 minutes at $22.80 per hour. At normal volume, the overhead costs are as follows: Variable overhead costs Indirect labour Utilities Labour-related costs Laboratory maintenance Fixed overhead costs Depreciation Supervisor Base utilities $19,000 3,000 16,000 10,000 28,000 29,900 8,500 1,500 Insurance 67,900 $115,900 Total overhead Overhead is allocated based on direct labour hours. During May 2020, 8,460 tests were performed. The records show the following actual costs and production data: Actual Cost $66,065 Activity 18,100 17,320 1,620 hours 37,584 Number of test kits purchased Number of test kits used Direct labour Total overhead costs Variable Fixed 45,180 68,250 Test kits are kept in inventory at standard cost. At the end of May, no tests were in process. Prepare a flexible overhead budget based on 80% of the normal volume. (Round cost per unit to 2 decimal places e.g. 5.25.) Cost Per Unit Total Cost Variable overhead costs Indirect labour Utilities Labour-related costs Laboratory maintenance Total variable overhead Fixed overhead costs Depreciation Supervisor Base utilities Insurance Total fixed overhead Total overhead costs b. Prepare a standard cost card for a water test. c. Calculate the direct materials price and quantity variances and the direct labour rate and efficiency variances for May 2020, indicating whether they are favourable or unfavourable, d. Calculate the laboratory variable overhead variances for the month, indicating whether they are favourable or unfavourable