Problem 24-05A a-c Hart Labs, Inc. provides med cow discese testing for both state and federal governmental agricultural agencies. Lecause the company's customers are governmental agencies, prices are strictly regulated. Therefore, Ilart Labs must constantly monitor and control its tecting costs Shown below are the standard costs for a typical test Direct mat (7 test tibes a $1.00 per tube) $3.80 Direct labor (1 hour $30 per hour) 30.00 Veriable overheed (1 hour $6.00 per hour) 6.00 Fixed wwerhead (1 hour $12.00 per hour) 12.00 Total standard cost per test $51.80 The lab docs not maintain an Inventory of test tubes. Ic arcult, the tubes purchased cach month are used that month. Actual activity for the month of November 2020, whon 1.100 tests were conducted, resulted in the following. Direct materials (2,310 test tubes) Direct lahor (1,133 hours Variable overhead Fixed overhead $1,158 32,857 0.3JO 12,672 Monthly budgeten fixed overhead is $16,560. Revenidas far the month ware 573,700, and selling and administrative expenses were 54,ono. Your answer is correct Compute the price and quantity variances to direct materials and direct labor Materials price variance 231 Havarbia Materials quentity variance 209 Un'avomhle Lalut i vurile 1133 Favarbia Labut unliy vurdu 900 SILOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO You answer is partially correct. Try again. Compule the lulel overhed vice * Total Overhead variance 3.30 Favori Your answer is partially correct. Try again. Prepare an income statement for management. HART LABS, INC. Income Statement For the Month Ended November 30, 2020 Sales Revenue 73700 Cost of Service Provided 56980 1 Gross Profit (at Standard) 16720 Variances Materials Price Variance 231 Favorable Materials Quantity Variance 209 Unfavorable Labor Price Variance 1133 Favorable Labor Quantity Variance 990 Unfavorable Overhead Variance 3096 Favorable Total Variance Favorable -2931 Gross Profit (Actual) 13789 X Il sell 4900 X Net Income / (Loss) 8889 Click if you would like to show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO