Longview Hospital Performs Blood Tests in Its Laboratory

question 330

Multiple Choice

Longview Hospital performs blood tests in its laboratory. The following standards have been set for each blood test performed: During May, the laboratory performed 1,500 blood tests. On May 1 there were no direct materials (plates) on hand; after a plate is used for a blood test it is discarded. Variable overhead is assigned to blood tests on the basis of standard direct labor-hours. The following events occurred during May: • 3,600 plates were purchased for $9,540
• 3,200 plates were used for blood tests
• 340 actual direct labor-hours were worked at a cost of $5,550
The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for May is:

• A)$360 F
• B)$360 U
• C)$740 F
• D)$740 U

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Definitions:

Thorndike

An American psychologist who developed the law of effect and is known for his work in learning theory and educational psychology.

Operant Conditioning

A type of learning where behavior is controlled by consequences, including rewards for positive actions and punishments for negative actions.

Reinforcement

A concept in behavioral psychology where a behavior becomes more likely to occur due to the consequence that follows it.

Operant Conditioning

A procedure in learning where the level of a particular behavior is tailored by means of encouragement or correction.