$1$ Plates: Two plates are required per lab test. These plates cost $$2\mathrm{.}15$ each and are disposed of after the test is completed.

Labour: Each blood test should require $0\mathrm{.}30$ hour to complete, and each smear should require $0\mathrm{.}15$ hour to complete. The average cost of this lab time is $$14\mathrm{.}00$ per hour.

overhead: Overhead cost is based on direct labour$-$hours. The average rate for variable overhead is $$5\mathrm{.}00$ per hour.

Bassett would like a complete analysis of the cost of plates, labour and overhead in the lab for the last month so that she can get to

$65$ the root of the lab's cost problem.

points

Required:

Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last References month. $($Indicate the effect of each variance by selecting $"$F$"$ for favourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$

$\backslash$table$[[,,,],[$Materials price variance,$$,1,890,$F$],[$Materials quantity variance,$$,5,418,$U$]]$