John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital's lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs Mr. Fleming has asked you to evaluate costs in the hospital's tab for the past month. The following information is available a. Two types of tests are performed in the lab-blood tests and smears. During the past month 650 blood tests and 2800 smears were performed in the lab. 1. Small glass plates are used in both types of tests. During the past month, the hospital purchased 14,000 plates at a cost of $40,880 1800 of these plates were unused at the end of the month no plates were on hand at the beginning of the month c. During the past month, 1,800 hours of labor time were recorded in the lab at a cost of $19.260 d. The lab's variable overhead cost last month totaled $13,320 Valley View Hospital has never used standard costs By searching industry literature, however, you have determined the following nationwide averages for hospital tabs Putes. Three plates are requied per lobtout These plates cost $300 each and are disposed of after the tea is completed Labor Each blood test should require 8 hours to complete, and each smear ihould require 040 hours to complete The average cost of this tab time is 51100 per hour Overhead Overhead cost is based on direct labor hours. The average rate for variable overhead 5690 per hour Required: 1. Compute a material price variance for the plates ourchased last month and a materials quante variance for the plates used to month 2 Forlabor cost in the lobe Computea laborate variance and a labor eficiency variance b. In most hospitals, one wall of the workers in the lab are senior technicians and one hallaresants in an effort to reduce costs Valley View Hospital employs only one fourth senion technicians and three-fourthstantsWould you recommend that the policy be continued Da Compute the variable overhead rate and efficiency vanances 3. Is there any relation between the variable overhead emency variance and the bor efficiency variance Complete this question by entering your answers in the tabs below -REGJA the labor efficiency variance? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Req 3A Req 3B Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None for no effect (1.e., zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Req2A > Print Complete this question by entering your answers in the tabs below. ferences Reg 1 Reg 2A Reg 28 Raga Reg30 For labor cost in the tab, compute a tabor rate variance and a labor endency variance Indicate the effect of each variance by selecting "F-for favorable, "U" for unfavorable, and "None for no effect ... zero variance) Input all amounts as positive values Laborate variance Labor efficiency variance a. Compute a labor rate variance and a labor efficiency variance b. In most hospitals, one-half of the workers in the tab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and the labor efficiency varlance? Complete this question by entering your answers in the tabs below. Reg1 Reg 2A Reg 2B Reg 3A Raq 38 Compute the variable overhead rate and efficiency variance (Indicate the effect of each variance by selecting "F" for favorable," for unfavorable, and one for no rect(toro varianon). Input all amounts as positive values Variable overhead rate variance Variable overhead officiency variance