US weovwsndt maanclanl Moagarlal Accounting,2 Help I System PRINTER VERSEON Prob
ID: 2595671 • Letter: U
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US weovwsndt maanclanl Moagarlal Accounting,2 Help I System PRINTER VERSEON Problem 25-5A (Part Level Submission) Hart Labs, Ing. provides mad cow disease testing for both state and federal govemmental are govemmental agencies, prices are strictly regulated. Therefore, Hart Labs must constantly monitor and contrel its testing costs. Shown below are the standard costs for a typical test. agricutural agencies. Because the company's austomers Direct materials (2 test tubes $1.40 per tube) Direct labor (3 hour$32 per hour) Variable overhead (1 hour $6.00 per hour) Pred overhead (1 hour $ 12.00 per hour) $2.80 6.00 12.00 52.80 Total standard cost per test The lab does not maintain an inventery of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2017, when 1,400 tests were conducted, resulted in the following Direct materials (2,884 test tubes) Direct labor (1,456 hours) Variable overhead Fixed averhead $3,547 45,136 8,316 15,792 Monthly budgeted fixed averhead is $17,520. Revenues for the month were $91,000, and selling and administrative expenses were $3,600 (a) Compute the price and quantity variances anect materials and drect labot (Round answers to 0 decimal places, e.0S,27$.) Materias price variance Matena's quantity varance Labor price variance Labor quentiby variancesExplanation / Answer
mAterials price variance (Actual price - standard price)*Standard rate (3,547 - 1.40*2884) 491 F Material Quantity variance (Actual qty - standard qty)*standard rate (2,884 - 2*1400)*1.4 118 U labor price variance (Actual price - standard price)*actual hours (45,136 - 1456*32) 1,456 F labor Quantity variance (Actual hours - standard hours )*Standard rate (1456 - 1400*1)*32 1792 U
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