2 Becton Labs, Incorporated produces various chemical compounds for industrial use. One compound called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity or sandard Veneer Standard Hora Bate Cost Direct materials 2.10 Ounces $15.00 per ou 3.50 Direct Labor 0.00 hours $15.00 per hour 12.00 Variable mai facturing overhead 0.30 hours 53.50 per hour 2.30 Total standard ceat per unit 46.30 During November, the following activity was recorded related to the production of Fludex 3. Materiais purchased, 10,500 ounces at a cost of $143.325 b. There was no beginning inventory of materials; however, at the end of the month, 3.050 ounces of material remained in ending Inventory c. The company employs 21 la technicians to work on the production of Hudex. During November, they each worked on average of 160 hours at an average pay rate of $13.50 per hour d. Variable manufacturing overhead is assigned to Fludex on the basis of direct lobor hours. Variable manufacturing overhead couts during November totaled $6.800 e. During November, the company produced 3,500 units of Fludex Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances b. In the past, the 21 technicians employed in the production of Fludex consisted of 5 senior technicians and 16 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Reg 2A Reg 25 Reg 3 For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (le, zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance 11 Req 10 > Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Reg 3 For direct materials, the materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? Yes No Complete this question by entering your answers in the tabs below. Req IA Req 10 Reg 2A Req 28 Req3 For direct labor, compute the rate ang efficiency variances. (Indicate the effect of each variance by selecting for favor "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance Variances Complete this question by entering your answers in the tabs below. Rel 28 Reg 1A Reg 16 Reg 2A Reg 3 Reg 28 In the past, the 21 technicians employed in the production of Fludex consisted of 5 senior technicians and 16 stats During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? Yes ONO Le variable overhead rate and emiciency variances Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Reg 2A Reg 28 Reg 3 Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting 'Pfor favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Variable overhead rate variance Variable overhead officiency variance Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Reg 3 For direct materials, the materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? Yes No Complete this question by entering your answers in the tabs below. Req IA Req 10 Reg 2A Req 28 Req3 For direct labor, compute the rate ang efficiency variances. (Indicate the effect of each variance by selecting for favor "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance Variances Complete this question by entering your answers in the tabs below. Rel 28 Reg 1A Reg 16 Reg 2A Reg 3 Reg 28 In the past, the 21 technicians employed in the production of Fludex consisted of 5 senior technicians and 16 stats During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? Yes ONO Le variable overhead rate and emiciency variances Complete this question by entering your answers in the tabs below. Reg 1A Reg 16 Reg 2A Reg 28 Reg 3 Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting 'Pfor favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Variable overhead rate variance Variable overhead officiency variance