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Problem 24-05A a-c 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 @ $1.50 per tube) Direct labor (1 hour @ $32 per hour) Variable overhead (1 hour @ $6.00 per hour) Fixed overhead (1 hour @ $12.00 per hour) Total standard cost per test $3.00 32.00 6.00 12.00 $53.00 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 2020, when 1,300 tests were conducted, resulted in the following. Direct materials (2,730 test tubes) Direct labor (1,365 hours) Variable overhead Fixed overhead $3,822 40,950 7,488 14,872 Monthly budgeted fixed overhead is $16,320. Revenues for the month were $85,800, and selling and administrative expenses were $4,600. Your answer is partially correct. Try again. Compute the price and quantity variances for direct materials and direct labor. Materials price variance 212 Favorable Materials quantity variance 48 Unfavorable Labor price variance 824 Favorable Labor quantity variance 744 Unfavorable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Your answer is partially correct. Try again. Compute the total overhead variance. Total Overhead variance 36 Favorable SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Prepare an income statement for management. HART LABS, INC. Income Statement For the Month Ended November 30, 2020 Sales Revenue Cost of Service Provided Gross Profit (at Standard) Variances Materials Price Variance Favorable Materials Quantity Variance Unfavorable Labor Price Variance Favorable Labor Quantity Variance Unfavorable Toverhead Variance Favorable Total Variance Favorable Gross Profit (Actual) TODO Selling and Administrative Expenses Net Income / (Loss) Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS

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