John Flemingchief administrator for a district hospital, concerned about costs for tests in the hospital's labFleming has asked you to evaluate costs for the past monthThe following information is available: a Basically, two types of tests are performed in the lab blood tests and smears. During the past month2,880 blood tests and 3,840 smears were performed in the lab. Small glass plates are used in both types of tests. During the past month, the hospital purchased 19,200 plates at a cost of $39,360 This cost is net of a 6% quantity discount of these plates were still on hand unused at the end of the month there were no plates on hand at the beginning of the month cDuring the past month 1, 750 hours of labour time were recorded in the lab. The cost of this labour time was $20,650. d Variable overhead cost last month in the lab for utilities and supplies totalled $ 10,675. The hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs Plates: Two plates are required per lab test. These plates cost $2.20 each and are disposed of after the test is completed . Labour blood test should require hour to complete, and each smear should require hour to complete. The average cost of this lab time is $14.00 per hour. Overhead: Overhead cost is based on direct labour-hours. The average rate for variable overhead is $5.00 per hour. Fleming would like a complete analysis of the cost of plates, labour, and overhead in the lab for the last month so that he can get to the root of the lab's cost problem. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie. zero variance).)

John Heming, chief administrator for a district hospital, is concerned about costs for tests in the hospital's lab Fleming has asked you to evaluate costs for the past month. The following information is available a Basically, two types of tests are performed in the low-blood tests and smears. During the past month. 2.880 blood tests and 3,840 smears were performed in the lab b Small glass plates are used in both types of tests. During the past month, the hospital purchased 19.200 plates ot a cost of $39,360 This cost is net of a 6% quantity discount 1920 of these plates were still on hand unused at the end of the month, there were no plates on hand at the beginning of the month During the past month, 1750 hours of labour time were recorded in the lab. The cost of this labour time was $20,650 d Variable overhead cost last month in the lab for utilities and supplies totalled $10675 The hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs Plates Two plates are required per lab test. These plates cost $2.20 each and are disposed of after the test is completed Lehoort Each blood test should require 0.30 hour to complete, and each mar should require 0.15 hour to complete. The average cost of this lab time is $14.00 per hour Overhead: Overhead cost is based on direct labour hours. The average rate for variable overhead is 55.00 per hour Fleming would like a complete analysis of the cost of plates, labour, and overhead in the lab for the last month so that he can get to the root of the tab's cost problem I Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (le, zere variance)) Materials pnce variance Materials quantity variance 2. For labour cost in the lab a. Compute a labour rate variance and a labour efficiency vonance. (Do not round intermediate calculations. Round "Emiciency variance" answer to 2 decimal places indicate the effect of each varlance by selecting "F" for favourable. "U" for unfavourable. and "None" for no effect ( zero variance) Labour rate variance Labour efficiency varice b. This part of the question is not part of your connect assignment 3.a. Compute the variable overhead spending and efficiency variances (Do not round intermediate calculations. Round emciency variance answer to 2 decimal places. Indicate the effect of each variance by selecting for favourable. "U" for unfavourable. and "None" for no effect de zero variance Variatie overhead spending Vruble overhead officiency ance 3-5. there any relationship between the variable overhead elticiency intance and the labour officiency variance NO