Bonita Labs performs steroid testing services to high schools, colleges, and universities. Because the company deals solely with educational institutions, the price of each test is strictly regulated. Therefore, the costs incurred must be carefully monitored and controlled. Shown below are the standard costs for a typical test.Direct materials (1 petri dish @ $1.80 per dish) ………….$ 1.80Direct labor (0.5 hours @ $20.50 per hour) ……………….10.25Variable overhead (0.5 hours @ $8 per hour) ………………4.00Fixed overhead (0.5 hours @ $5 per hour) …………………2.50Total standard cost per test ………………………………$18.55The lab does not maintain an inventory of petri dishes. Therefore, the dishes purchased each month are used that month. Actual activity for the month of May 2014, when 2,500 tests were conducted, resulte
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