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John Fleming, ehef administrator for Valley View Hospital, Is concerned about the costs for tests in the hospital's lab. Charges for lab tests are consistently higher at valley view than at other hospitais and have resulted in many complaints Aiso, because of strict regulatlons on amounts rembursed for lab tests, payments recelved from insurance companies and governmental units have not been high enough to cover lab costs. Ms. Heming has asked you to evaluate costs in the hospital's lab for the past month. The folowing 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 smears were performed in the tab. b. Small giass 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. Dunng the past month, 3,100 hours of jabor 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 itterature, however, you have determined the following 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 average cost of this lab time is $1230 per hour. Overnead Overhead cost is based on direct labor-hours. The average rate for vartable overhead is $8.20 per hour. Required: 1. Compute a materlals price vartance for the plates purchased last month and a materlals quantity varlance for the plates used last month. 2. For labor cost in the lab: a. Compute a Iabor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are sentor technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the varlabie overhead rate and efficiency variances 3-b. Is there any relation between the variable overhead efficiency vallance and the labor efficiency variance?" Complete this question by entering your answers in the tabs below. Compute a materials price variance for the plates purchased last month and a materials quantity vatiance for the plates used last month. (Indicate the effect of each variance by selecting "F for favorable. "U" for unfavorable, and "None" for no elfect (f.e., tero variance). Ifput all amounts as positive values.)