Question: Hi all - looking for help with this multi-part question. Thank you! Problem 24-05A a-c Hart Labs, Inc. provides mad cow disease testing for both

Hi all - looking for help with this multi-part question.

Thank you!

Hi all - looking for help with this multi-part question. Thank you!Problem 24-05A a-c Hart Labs, Inc. provides mad cow disease testing for

Problem 24-05A a-c Hart 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, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.60 per tube) $3.20 Direct labor (1 hour @ $32 per hour) 32.00 Variable overhead (1 hour @ $7.00 per hour) 7.00 Fixed overhead (1 hour @ $12.00 per hour) 12.00 Total standard cost per test $54.20 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 2020, when 1,000 tests were conducted, resulted in the following. Direct materials (2,100 test tubes) $3,150 Direct labor (1,040 hours) 32,240 Variable overhead 6,460 Fixed overhead 11,560 Monthly budgeted fixed overhead is $17,040. Revenues for the month were $67,000, and selling and administrative expenses were $4,700. Compute the price and quantity variances for direct materials and direct labor. Materials price variance Materials quantity variance Labor price variance Labor quantity variance $ SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Compute the total overhead variance. Total Overhead variancePrepare an income statement for management. HART LABS, INC. Income Statement

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!