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
Correct Answer:
Verified
Correct Answer:
Verified
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