(a)Compute the price and quantity variances for direct materials and direct labor.Materials price varianceMaterials quantity varianceLabor price varianceLabor quantity varianceeTextbook and MediaList of AccountsSave for Later$$$$+++Submit Answer Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies.Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Hart Labs mustconstantly monitor and control its testing costs. Shown below are the standard costs for a typical test.Direct materials (2 test tubes @ $1.90 per tube)Direct labor (1 hour @ $30 per hour)Variable overhead (1 hour @ $6.00 per hour)Fixed overhead (1 hour @ $12.00 per hour)Total standard cost per testDirect materials (2,310 test tubes)Direct labor (1,133 hours)Variable overheadFixed overhead$3.80$4,15832,8576,33612,67230.006.0012.00The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month.Actual activity for the month of November 2020, when 1,100 tests were conducted, resulted in the following.$51.80Monthly budgeted fixed overhead is $16,560. Revenues for the month were $73,700, and selling and administrativeexpenses were $4,900.

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MATERIALS PRICE VARIANCE Direct Materials Price Variance is the difference between the actual and…

Business

Accounting

(a) Compute the price and quantity variances for direct materials and direct labor. Materials price variance Materials quantity variance Labor price variance Labor quantity variance eTextbook and Media List of Accounts Save for Later $ $ $ $ + + + Submit Answer

(a) Compute the price and quantity variances for direct materials and direct labor. Materials price variance Materials quantity variance Labor price variance Labor quantity variance eTextbook and Media List of Accounts Save for Later $ $ $ $ + + + Submit Answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Oriole Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Oriole Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.80 per tube) Direct labor (1 hour @ $32 per hour) Variable overhead (1 hour @ $7.00 per hour) Fixed overhead (1 hour @ $12.00 per hour) Total standard cost per test Direct materials (2,520 test tubes) Direct labor (1,248 hours) Variable overhead Fixed overhead $4,284 38,688 7,068 $3.60 14,940 32.00 The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2022, when 1,200 tests were conducted, resulted in the following. 7.00 12.00 $54.60 Monthly budgeted fixed overhead is $16,320. Revenues for the month were $79,200,…
Pace Labs. Inc. provides mad cow disease testing for both state and federal governmental, agricultural agencies. Because the company's customers are governmental agencies, prices are strictly regulated. Therefore, Pace Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.46 per tube) $ 2.92 Direct Labor (1 hour @ $24 per hour) 24.00 Variable overhead (1 hour @ $6 per hour) 6.00 Fixed overhead (1 hour @ $10 per hour) 10.00 Total standard cost per test $42.92 The lab does not maintain an inventory of test tubes. Therefore, the tubes purchased each month are used that month. Actual activity for the month of November 2014, when 1,500 tests were conducted, resulted in the following. Direct materials (3,050 test…
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Hart Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the company’s customers are governmental agencies, prices are strictly regulated. Therefore, Hart Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test. Direct materials (2 test tubes @ $1.46 per tube) $2.92 Direct labor (1 hour @ $24 per hour) 24.00 Variable overhead (1 hour @ $6 per hour) 6.00 Fixed overhead (1 hour @ $10 per hour) 10.00 Total standard cost per test $42.92 The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2020, when 1,475 tests were conducted, resulted in the following. Direct materials (3,050 test tubes) $4,270 Direct labor (1,550 hours) 35,650 Variable overhead 7,400 Fixed overhead 15,000 Monthly budgeted fixed overhead is…
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