WATERWAY LABS, INC. Income Statement For the Month Ended November 30, 2022 v toWATERWAY LABS, INC. Income Statement For the Month Ended November 30, 2022 v to V V V $Question 2 of 2 10/20 E on. View Policies Show Attempt History Current Attempt in Progress Waterway 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, Waterway Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.50 per tube) $3.00 Direct labor (1 hour @ $32 per hour) 32.00 Variable overhead (1 hour @ $6.00 per hour) 6.00 Fixed overhead (1 hour @ $12.00 per hour) 12.00 Total standard cost per test $53.00 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 2022, when 1,300 tests were conducted, resulted in the following. Direct materials (2,730 test tubes) $3,822 Direct labor (1,365 hours) 40,950 Variable overhead 7,488 Fixed overhead 14,872 Monthly budgeted xed overhead is $16,320. Revenues for the month were $85,800, and selling and administrative expenses were $4,600