Problem 26-05A a-c (Video) 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 @ $1.40 per tube) Direct labor (1 hour @ $30 per hour) Variable overhead (1 hour @ $6.00 per hour) Fixed overhead (1 hour $13.00 per hour) Total standard cost per test $2.80 30.00 6.00 13.00 S51.80 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 2020, when 1,200 tests were conducted, resulted in the following. Direct materials (2,520 test tubes) Direct labor (1,236 hours) Variable overhead Fixed overhead 53,276 35,844 7,068 14,592 Monthly budgeted fixed overhead is $19,110. Revenues for the month were $79,200, and selling and administrative expenses were $4,300. Compute the price and quantity variances for direct materials and direct labor. Materials price variance Materials quantity variance Favorable Neither favorable nor unfavorable Unfavorable Labor price variance Labor quantity variance Compute the total overhead variance. Total Overhead variance Prepare an income statement for management. HART LABS, INC. Income Statement Dividends Expenses Gross Profit (Actual) Gross Profit (at Standard) Net Income / (Loss) Revenues Total Expenses Total Revenues Total Variance Variances Click if you would like to Show Work for this question: Open Show Work