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to evaluate costs for the past month The following hit is concemed about costs for tests in the hospital's lab. Fleming has asked you a. Basically, two types of tests are performed in the lab-blood tests and smears. During the past month, 3,600 blood tests and 4,800 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 24,000 plates at a cost of $58,800. This cost is net of a 6% quantity discount 2,400 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. c. During the past month, 2150 hours of labour time were recorded in the lab. The cost of this labour time was $26,230. d. Variable overhead cost last month in the lab for utilities and supplies totalled $15,050. 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 52.60 each and ore disposed of after the test is completed. tabour: Each blood test should require 0.30 hour to complete, and each saear should require 0.15 hour to complete. The average overheas: Overhead cost is based on direct labour-hours. The overage rate for variable overhead is 35.86 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 varionce by selectina "F" for favourable. " U " for unfovouroble. ond "None" for no effect "iast 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 (i.e., zero variance).) 2. For labour cost in the lab: a. Compute a labour rate variance and a labour efficiency variance. (Do not round intermediate calculotions. Round "Efficiency variance" answer to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable and "None" for no effect (i.e., zero varionce).) 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 "Efficiency variance" onswer to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfovourable, and "None" for no effect (i.e., zero variance.).) 3-b. Is there any relationship between the variable overhead efficiency variance and the labour efficiency variance? Yes No

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