A. Judge Yankee Distilling Company produces a number of alcohol-based solvents for industrial contamination prevention use. One of the solvents, Ripit, is produced through an extensive distilling process. Yankee Distilling has developed the following standards for Ripit. Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity Or Hours 2.00 ounces 0.50 hours 0.50 hours Standard Price or Rate $30.00 per ounce $14.00 per hour $ 3.40 per hour Standard Cost $60.00 7.00 1.70 $68.70 For the month of August, Yankee Distilling recorded the following activity related to the production of Ripit: a. Materials purchased, 10,000 ounces at a cost of $287,000. b. There was no beginning inventory of materials; however, at the end of the month, 3,000 ounces of material remained in ending inventory c. The company employs 20 lab technicians to work on the production of Ripit. During August, they each worked an average of 130 hours at an average pay rate of $12.00 per hour. d. Variable manufacturing overhead is assigned to Ripit on the basis of direct labor-hours. Variable manufacturing overhead costs during August totaled $4,700. e. During August, the company produced 3,400 units of Ripit. Required: Help Save & Exit 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 20 technicians employed in the production of Ripit consisted of 4 senior technicians and 16 assistants. During August, 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 1B Reg 2A Reg 28 Req3 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 (.e., zero variance). Input all amounts as positive values.) Materials price variance melp Sub Save & Exit ICC VIGILES b. In the past, the 20 technicians employed in the production of Ripit consisted of 4 senior technicians and 16 assistants. During August, 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. Req 1A Reg 1B Reg 2A Reg 28 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 (.e., zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Reg 18 u. CompuLE LIIC IGLC GTU CHCI ICICILY Valances. b. In the past, the 20 technicians employed in the production of Ripit consisted of 4 senior techni August, the company experimented with fewer senior technicians and more assistants in order to 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. Req 1A Reg 1B Req 2A Reg 2B Req 3 For direct materials, the materials were purchased from a new supplier who is anxious to enter into a contract. Would you recommend that the company sign the contract? OYes Ono UN CICICIILE Varances. b. In the past, the 20 technicians employed in the production of Ripit consisted of 4 senio August, the company experimented with fewer senior technicians and more assistants in 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. Req 1A Req 1B Req 2A Req 2B Req3 For direct labor, compute the rate and efficiency variances. (Indicate the effect of each varianc "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positiv Labor rate variance Labor efficiency variance vurules. In the past, the 20 technicians employed in the production of Ripit consisted of 4 senior ugust, the company experimented with fewer senior technicians and more assistants in o ecommend that the new labor mix be continued? . Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Reg 2B Reg 3 In the past, the 20 technicians employed in the production of Ripit consisted of 4 senior technicia August, the company experimented with fewer senior technicians and more assistants in order to you recommend that the new labor mix be continued? OYes O No