Please do not give solution in image format thanku Compute the price and quantity variances for direct materials and direct labor.Materials price varianceMaterials quantity varianceLabor price varianceLabor quantity varianceLALALA Bonita Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because thecompany's customers are governmental agencies, prices are strictly regulated. Therefore, Bonita Labs must constantly monitor andcontrol 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 @ $24 per hour)Variable overhead (1 hour @ $7.20 per hour)Fixed overhead (1 hour @ $9.00 per hour)Total standard cost per testDirect materials (2,800 test tubes)Direct labor (1,390 hours)Variable overheadFixed overhead$3,08031,275The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activityfor the month of November 2022, when 1,330 tests were conducted, resulted in the following.7,650$2.8024.0012,5007.209.00$43.00Monthly budgeted fixed overhead is $12,600. Revenues for the month were $67,500, and selling and administrative expenses were$4,500.

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Description: Please do not give solution in image format thanku Compute the price and quantity variances for direct materials and direct labor.Materials price varianceMaterials quantity varianceLabor price varianceLabor quantity varianceLALALA Bonita Labs, Inc. p

MATERIALS PRICE VARIANCE Direct Materials Price Variance is the difference between the actual and…

Answered: Compute the price and quantity…

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Compute the price and quantity variances for direct materials and direct labor. Materials price variance Materials quantity variance Labor price variance Labor quantity variance $ $ +A $ $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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