<. %24 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 beloware the standard costs for a typical test. Direct materials (2 test tubes @ $1.50pertube) Direct labor (1 hour @ $32 per hour) Variable overhead (1 hour @56.00 per hour) Fixed overhead (1 hour @512.00 per hour Total standard cost per test 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) こ78C5 Direct labor (1,365 hours) 40,950 Variable overhead Fixed overhead Monthly budgeted fixed overhead is $16,320. Revenues for the month were $85,800, and selling and administrative expenses were 0090 () Your Answer Correct Answer (Used) Compute the price and quantity variances for direct materials and direct labor. Materials price variance Favorable 5. Materials quantity variance Unfavorable Labor price variance 2,730 Favorable 5. Labor quantity variance 2,080 Unfavorable 5. (b) Compute the total overhead variance. Total Overhead variance
<. %24 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 beloware the standard costs for a typical test. Direct materials (2 test tubes @ $1.50pertube) Direct labor (1 hour @ $32 per hour) Variable overhead (1 hour @56.00 per hour) Fixed overhead (1 hour @512.00 per hour Total standard cost per test 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) こ78C5 Direct labor (1,365 hours) 40,950 Variable overhead Fixed overhead Monthly budgeted fixed overhead is $16,320. Revenues for the month were $85,800, and selling and administrative expenses were 0090 () Your Answer Correct Answer (Used) Compute the price and quantity variances for direct materials and direct labor. Materials price variance Favorable 5. Materials quantity variance Unfavorable Labor price variance 2,730 Favorable 5. Labor quantity variance 2,080 Unfavorable 5. (b) Compute the total overhead variance. Total Overhead variance
Chapter1: Financial Statements And Business Decisions
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Unit VIII question 11 part b
Transcribed Image Text:<.
%24
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 beloware the standard costs for a typical test.
Direct materials (2 test tubes @ $1.50pertube)
Direct labor (1 hour @ $32 per hour)
Variable overhead (1 hour @56.00 per hour)
Fixed overhead (1 hour @512.00 per hour
Total standard cost per test
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)
こ78C5
Direct labor (1,365 hours)
40,950
Variable overhead
Fixed overhead
Monthly budgeted fixed overhead is $16,320. Revenues for the month were $85,800, and selling and administrative expenses were
0090
()
Your Answer
Correct Answer (Used)
Compute the price and quantity variances for direct materials and direct labor.
Materials price variance
Favorable
5.
Materials quantity variance
Unfavorable
Labor price variance
2,730
Favorable
5.
Labor quantity variance
2,080
Unfavorable
5.
(b)
Compute the total overhead variance.
Total Overhead variance
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Unit VIII question 11 part c
Transcribed Image Text:%24
Prepare an income statement for management.
WATERWAY LABS, INC.
Income Statement
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Attempts O ot 3 used Submie Anower
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