Problem 15-5 Pina 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, Pina Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. $3.00 25.00 6.00 10.00 $44.00 Direct materials (2 test tubes$1.50 per tube) Direct labor (1 hour @ $25 per hour) Variable overhead (1 hour $6.00 per hour) Fixed overhead (1 hour $10.00 per hour) Total standard cost per test 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 2017, when 1,460 tests were conducted, resulted in the following: Direct materials (3,040 test tubes) Direct labor (1,534 hours) Variable overhead Fixed overhead $4,256 36,816 7,170 14,850 Monthly budgeted fixed overhead is $14,000. Revenues for the month were $81,760, and selling and administrative expenses were $4,600 Problem 15-5 Pina 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, Pina Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. $3.00 25.00 6.00 10.00 $44.00 Direct materials (2 test tubes$1.50 per tube) Direct labor (1 hour @ $25 per hour) Variable overhead (1 hour $6.00 per hour) Fixed overhead (1 hour $10.00 per hour) Total standard cost per test 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 2017, when 1,460 tests were conducted, resulted in the following: Direct materials (3,040 test tubes) Direct labor (1,534 hours) Variable overhead Fixed overhead $4,256 36,816 7,170 14,850 Monthly budgeted fixed overhead is $14,000. Revenues for the month were $81,760, and selling and administrative expenses were $4,600