Longview Hospital Performs Blood Tests in Its Laboratory

question 26

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 variable overhead efficiency variance for May is

• A)$350 F
• B)$350 U
• C)$280 U
• D)$280 F

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Definitions:

Fusion Reaction

A nuclear reaction in which two or more atomic nuclei come close enough to form one or more different atomic nuclei and subatomic particles, releasing large amounts of energy.

Fission Reaction

A nuclear reaction in which a heavy nucleus splits into smaller nuclei, releasing energy and, often, neutrons.

U-238

U-238 denotes uranium-238, the most abundant isotope of uranium found in nature, known for its long half-life and use as a starting material in the production of nuclear fuel and atomic weapons.

U-235

An isotope of Uranium with a unique capability for nuclear reactions, particularly used in nuclear reactors and weapons.