Longview Hospital Performs Blood Tests in Its Laboratory

question 164

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 labor rate variance for May is:

• A)$225 F
• B)$225 U
• C)$450 F
• D)$450 U

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Definitions:

Exteroceptors

Sensory receptors that receive stimuli from the external environment, involved in senses such as sight, hearing, taste, smell, and touch.

Olfactory Cortex

A region of the brain involved in the processing of smell information received from the olfactory receptors.

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment and send signals to the central nervous system.

Nasal Cavity

The large air-filled space behind the nose that filters, warms, and humidifies inhaled air.