Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month.For labor cost in the lab, Compute a labor rate variance and a labor efficiency varianceCompute the variable overhead rate and efficiency variances. John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital's lab. Charges forlab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strictregulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have notbeen high enough to cover lab costs.Mr. Fleming has asked you to evaluate costs in the hospital's lab 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, 1,350 blood tests and 4,100 smearswere performed in the lab.b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 20,500 plates at a cost of$59,040. 3,100 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, 3,100 hours of labor time were recorded in the lab at a cost of $35,185.d. The lab's variable overhead cost last month totaled $26,970.Valley View Hospital has never used standard costs. By searching industry literature, however, you have determined the followingnationwide averages for hospital labs:Plates: Three plates are required per lab test. These plates cost $3.00 each and are disposed of after the test is completed.Labor. Each blood test should require 0.8 hours to complete, and each smear should require 0.40 hours to complete. The averagecost of this lab time is $12.30 per hour.Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $8.20 per hour.

Name: Compute a materials price variance for the plates purchased last month
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month.For labor cost in the lab, Compute a labor rate variance and a labor efficiency varianceCompute the variable overh