3 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 Check my work Cust 7 pos Direct materials Direct labor Variable manufacturing overbead 39.00 per unce 12.00 per hour 75.40 3.10 signed Total standard cost per unit 94.70 During November, the following activity was recorded related to the production of Fludex eflock 01 P a. Materials purchased, 14,000 ounces at a cost of $388,500 b. There was no beginning inventory of materials; however, at the end of the month, 2,950 ounces of material remained in ending Inventory c. The company employs 22 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $11.00 per hour d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5.500 e. During November, the company produced 4,200 units of Flude 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 22 technicians employed in the production of Fludex consisted of 5 senior technicians and 17 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 Saved Help Save & Exit 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: Direct materials Direct labor Variable nanufacturing overhead Total standard cost per unit Standard Quantity or Standard Price or Hours 2.60 ounces 0.60 hours 0.60 hours Rate $29.00 per ounce $ 12.00 per hour Standard Cont $75.40 7.20 $ 3.50 per hour 2.10 $ 84.70 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 14,000 ounces at a cost of $388.500. b. There was no beginning inventory of materials; however, at the end of the month, 2,950 ounces of material remained in ending Inventory c. The company employs 22 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $11.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5,500. e. During November, the company produced 4,200 units of Fludex. Check my ped ok 0 unces Total standard cost per unit During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 14,000 ounces at a cost of $388,500. $94.70 b. There was no beginning inventory of materials; however, at the end of the month, 2,950 ounces of material remained in ending Inventory. c. The company employs 22 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $11.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5,500. e. During November, the company produced 4,200 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 22 technicians employed in the production of Fludex consisted of 5 senior technicians and 17 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