Problem 24-05A a-c 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. Direct materials (2 test tubes @ $1.70 per tube) Direct labor (1 hour @ $32 per hour) Variable overhead (1 hour @ $7.00 per hour) Fixed overhead (1 hour @ $13.00 per hour) Total standard cost per test $3.40 32.00 7.00 13.00 $55.40 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 2020, when 1,300 tests were conducted, resulted in the following. Direct materials (2,730 test tubes) Direct labor (1,339 hours) Variable overhead Fixed overhead $4,368 41,509 8,580 16,211 Monthly budgeted fixed overhead is $18,460. Revenues for the month were $84,500, and selling and administrative expenses were $3,600. Your answer is correct. Compute the price and quantity variances for direct materials and direct labor. Materials price variance 27 Favorable Materials quantity variance Unfavorable Labor price variance Favorable Labor quantity variance 248 Unfavorable Prepare an income statement for management. HART LABS, INC. Income Statement For the Month Ended November 30, 2020 Sales Revenue 84500 rovided Cost of Service Provided 41416 Gross Profit (at Standard) 43084 Tvariances Materials Price Variance 273 T Favor TMaterials Quantity Variance Favorable -221 Tunt Unfavorable 1339 Favorable Labor Price Variance Labor Quantity Variance 1248 Unfavorable Overhead Variance 1209 Favorable Total Variance Favorable 1352 Gross Profit (Actual) 44436 Tselling and Administrative Expenses 3600 Net Income / (Loss) 40836