Clearwater hospital has never used standard costs. By searching industry literature how ever you have determined the following nationwide averages for hospital labs Plates: three plates are required pear lab test these plates cost 2.50 each and are disposed of after the test is completed. Labor: each smear should require 0.3 to complete and each blood test require 0.6 hours to complete the average cost of this lab time is $12 per hour Overhead: overhead cost is based on direct labor hours the average rate of variable overhead is $6 per hour the average rate of fixed overhead is $8 per hour the rates are based a denominator activity level of 1250 per hour month Required: 1- Compute the material price variance for the plates purchased last month and compute materials quantity variance for plates used last month (indicate the effect of each variance by selecting "F" for favorable "U" for unfavorable and None for no effect zero variance: Materials Price Variance • Material Quantity variance • Labor rate variance • Labor efficiency variance • Variable overhead spending variance • Variable overhead efficiency variance • Fixed overhead budget variance • Fixed overhead volume variance
Clearwater hospital has never used standard costs. By searching industry literature how ever you have determined the following nationwide averages for hospital labs Plates: three plates are required pear lab test these plates cost 2.50 each and are disposed of after the test is completed. Labor: each smear should require 0.3 to complete and each blood test require 0.6 hours to complete the average cost of this lab time is $12 per hour Overhead: overhead cost is based on direct labor hours the average rate of variable overhead is $6 per hour the average rate of fixed overhead is $8 per hour the rates are based a denominator activity level of 1250 per hour month Required: 1- Compute the material price variance for the plates purchased last month and compute materials quantity variance for plates used last month (indicate the effect of each variance by selecting "F" for favorable "U" for unfavorable and None for no effect zero variance: Materials Price Variance • Material Quantity variance • Labor rate variance • Labor efficiency variance • Variable overhead spending variance • Variable overhead efficiency variance • Fixed overhead budget variance • Fixed overhead volume variance
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter6: Statistical Inference
Section: Chapter Questions
Problem 24P: The manager of an automobile dealership is considering a new bonus plan designed to increase sales...
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