Its a standard practice question I am struggling with 2-b. This part of the question is not part of your Connect assignment.3-a. Compute the variable overhead spending and efficiency variances. (Indicate the effect of each varlance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance).)Variable overhead spending varianceVariable overhead efficiency variance3-b. This part of the question is not part of your Connect assignment.4. Compute the fixed overhead budget and volume variances. (Indicate the effect of each varlance by selecting "F" for favorable,"U" for unfavorable, and "None" for no effect (l.e., zero varlance).)Fixed overhead budget varianceFixed overhead volume variance Marc Goudreau, administrator of Clearwater Hospital, was puzzled by the prior month's reports. "Every month, it's anyone's guesswhether the lab will show a profit or a loss. Perhaps the only answer is to increase our lab fees again.""We can't," replied Rhoda Groves, the controller. "There are still a lot of complaints about the last increase, particularly from theinsurance companies and government health units. They're now paying only about 81% of what we bill. I'm beginning to think theproblem is on the cost side."To determine if the Clearwater lab costs are in line with those of other hospital labs, Goudreau has asked you to evaluate the costs forthe past month. Groves has provided you with the following information:a. Two basic types of tests are performed in the lab-smears and blood tests. During the past month, 2,700 smears and 660 bloodtests were performed in the lab.b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 16,000 plates at a cost of $31,360.This cost is net of a 2% purchase discount. A total of 1,600 of these plates were unused at the end of the month; no plates were onhand at the beginning of the month.c. During the past month, 1,400 hours of labour time were used in performing smears and blood tests. The cost of this labour time was$17,990.00.d. The lab's variable overhead cost last month totalled $4,950.e. Fixed overhead cost last month totalled $8,500.Clearwater Hospital has never used standard costs. By searching industry literature, however, you have determined the followingnationwide averages for hospital labs:Plates: Three plates are required per lab test. These plates cost $2.00 each and are disposed of after the test is completed.Labour: Each smear should require 8.3 hours to complete, and each blood test should require 0.6 hours to complete. The averagecost of this lab time is $15 per hour.Overhead: Overhead cost is based on direct labour-hours. The average rate of variable overhead is $3 per hour. The average rate offixed overhead is $8 per hour. These rates are based on a denominator activity level of 1,000 hours per month.Required:1. Compute the materials price variance for the plates purchased last month, and compute a materials quantity variance for the platesused last month. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect(I.e., zero variance).)Materials price varianceMaterials quantity variance2-a. Compute a labour rate variance and a labour efficiency variance for the lab. (Indicate the effect of each varlance by selecting "F"for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Do not round Intermediate calculation and roundyour final answers to 1 decimal place.)Labour rate varianceLabour efficiency variance

Variance:The variance in accounting refers to the deviation which is between the figure of the…

Materials price variance Materials quantity variance a. Compute a labour rate variance and a labour efficiency variance for the lab. (Indicate the effect of each or favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Do not round intermedia our final answers to 1 decimal place.) Labour rate variance Labour efficiency variance

Materials price variance Materials quantity variance a. Compute a labour rate variance and a labour efficiency variance for the lab. (Indicate the effect of each or favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Do not round intermedia our final answers to 1 decimal place.) Labour rate variance Labour efficiency variance

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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Because of the ongoing community quarantine brought about by COVID-19, there was a drastic reduction in the revenue from vegetable sales. The management decided to wait until the pandemic is over and present financial statements for the waiting period rather than prepare now the traditional twelve-month financial statements. Which of the following statements is true? * This is a violation of the periodicity assumption. This supports the going concern assumption. This is a violation of the monetary unit assumption. This supports the accrual basis of accounting.
John Fleming, chief 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 other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming asked you to evaluate costs in the hospital's lab for the past month. The following information is available: a. Two types of tests are performed in the lab-blood tests and smears. During the past month, 1,250 blood tests and 3,900 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 19,500 plates at a cost of $73,320. 2,900 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. c. During the past month, 2,900 hours of…
John Fleming, chief 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 other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming asked you to evaluate costs in the hospital's lab for the past month. The following information is available: a. Two types of tests are performed in the lab-blood tests and smears. During the past month, 900 blood tests and 3,300 smears were performed in the lab. b. Small glass plates are used in both types of tests. During the past month, the hospital purchased 16,500 plates at a cost of $35,640. 2,300 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. c. During the past month, 2,300 hours of labor…
John Fleming, chief 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 hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for the past month. The following information is available: Two types of tests are performed in the lab—blood tests and smears. During the past month, 1,100 blood tests and 3,600 smears were performed in the lab. Small glass plates are used in both types of tests. During the past month, the hospital purchased 18,000 plates at a cost of $58,140. 2,600 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. During the past month, 2,600 hours…
John Fleming, chief 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 hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for the past month. The following information is available: Two types of tests are performed in the lab—blood tests and smears. During the past month, 1,500 blood tests and 4,400 smears were performed in the lab. Small glass plates are used in both types of tests. During the past month, the hospital purchased 22,000 plates at a cost of $52,800. 3,400 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. During the past month, 3,400 hours of labor…
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