Problem 23-5A (Part Level Submission) 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. $3.80 32.00 Direct materials (2 test tubes @ $1.90 per tube) Direct labor (1 hour @ $32 per hour) Variable overhead (1 hour @ $6.00 per hour) Fixed overhead (1 hour @ $12.00 per hour) Total standard cost per test 6.00 12.00 $53.80 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 1,400 tests were conducted, resulted in the following: Direct materials (2,828 test tubes) Direct labor (1,456 hours) Variable overhead Fixed overhead $4,892 45,136 8,316 15,960 Monthly budgeted fixed overhead is $17,880. Revenues for the month were $95,200, 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. (Round answers to o decimal places, e.g. 5,275.) Materials price variance 481 Favorable Materials quantity variance 53 Unfavorable Labor price variance 1,456 Favorable Labor quantity variance 1,792 Unfavorable Click if you would like to Show Work for this question: Open Show Work Prepare an income statement for management. HART LABS, INC. Income Statement For the Month Ended November 30, 2017 Service Revenue 95,200 Cost of Service Provided (at standard) Gross Profit (at standard) Variances Materials Price Materials Quantity Labor Price Labor Quantity Overhead Total Variance Gross Profit (actual) Selling and Administrative Expenses Net Income / (Loss) Click if you would like to Show Work for this question: Open Show Work