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Problem 12.43A a-d Under a contract with the provincial government, ChemLabs Ltd. analyzes the chemical and bacterial composition of well water in various municipalities in

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Problem 12.43A a-d 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 $25.50 per test performed. The normal volume is 10,000 tests per month. Each test requires two testing kits, which have a standard price of $3.65 each. Direct labour to perform the test is 10 minutes at $22.80 per hour. At normal volume, the overhead costs are as follows: $18,500 4,000 16,000 9,500 $48,000 Variable overhead costs Indirect labour Utilities Labour-related costs Laboratory maintenance Fixed overhead costs Depreciation Supervisor Base utilities Insurance Total overhead 27,500 29,700 9,000 1,600 67,800 $115,800 Overhead is allocated based on direct labour hours. During May 2020, 8,220 tests were performed. The records show the following actual costs and production data: Actual Cost $63,000 Activity Number of test kits purchased 17,500 Number of test kits used 17,000 Direct labour 1,600 hours Total overhead costs Variable Fixed 36,960 45,140 68,240 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 Total variable overhead Fixed overhead costs Total fixed overhead Total overhead costs Prepare a standard cost card for a water test. (Enter direct labour quantity in fraction, e.g. 1/5. Round other answers to 2 decimal places, e.g. 15.25.) Standard Price Quantity Cost Overhead: LINK TO TEXT LINK TO TEXT LINK TO TEXT 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. (Round answers to the nearest whole dollar, e.g. 5,275.) Materials price variance Materials quantity variances Labour price variance Labour quantity variance LINK TO TEXT LINK TO TEXT LINK TO TEXT Calculate the laboratory variable overhead variances for the month, indicating whether they are favourable or unfavourable. (Round answers to the nearest whole dollar, e.g. 5,275) Total VOH variance VOH spending variances VOH efficiency variance

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