Longview Hospital Performs Blood Tests in Its Laboratory

question 106

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:

Personal Interactions

Personal interactions refer to direct and reciprocal communication or engagement between two or more individuals.

Cell Phone

A portable telephone that uses wireless technology to send and receive calls and messages.

Caller ID

A telephone feature that displays the phone number of the incoming call.

Important Call

A critical or significant telephone conversation with a stakeholder that can have a substantial impact on business operations or outcomes.