Longview Hospital Performs Blood Tests in Its Laboratory

question 72

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 efficiency variance for May is:

• A)$600 F
• B)$600 U
• C)$515 U
• D)$515 F

---

Definitions:

Heart Knowledge

Understanding and knowledge about heart health, diseases, and the functioning of the cardiovascular system.

Document

A piece of written, printed, or electronic matter that provides information or evidence or serves as an official record.

Meditating

The practice of focusing the mind on a particular object, thought, or activity to train attention and awareness, and achieve a mentally clear and emotionally calm state.

Quiet Time

A period of calm or silence, used for relaxation, meditation, or reflection.