rale l mauu overhead is s6 per hour. The average are based on a denominator activity level of 1.250 hours per month Required 1. Compute the materials price variance for the plates purchased last month. and compute a materials quantity variance for the plates used last month 2. a. Compute a labour rate variance and a labour efficiency variance for the lab. h In most hospitals three-quarters of the workers in the lab are certified technicians and one-quarter are assistants. In an effort to reduce costs, Clearwater Hospital employs only one-half certified technicians and one-half assistants. Would recommend that this policy be continued? Explain. Compute the variable overhead spending and efficiency variances. Is there any relation- ship between the variable overhead efficiency variance and the labour efficiency vari- 3. ance? Explain. Compute the fixed overhead budget and volume variances. 4. PROBLEM 10-20 Comprehensive Standard Cost Variances ILO2, LO3, LO4, LOS, LO6 Clarissa McWhirter, vice-president of Cyprus Company, was pieased io see a small variance on the income statement after the trouble the company had been having in controlling manu facturing costs. She noted that the $12.250 overall manufacturing variance reported last period was well below the 3% limit that had been set for variances. The company produces and sells a single product. The standard cost card for the product follows: Standard Cost Card-Per Unit Direct labour, 15 direct labour-hours at $12 per direct labour-hourB $ 14 Fixed overhead, 15 direct labour-hours at $6 per direct labour-hour. Standard cost per unit. $44