Becton Labs in produces various chemical compounds for industrial use. One compound, called Puder, is prepared by means of an elaborate destilling process. The company has developed standard costs for one unit of Hudex, is follows: 2.40 Lt Direct materials Direct Tabour Variable overhead 1.50 hours at 3520 per mit $17.00 per hour $ 6.00 per hour During November, the following activity was recorded by the company relative to production of Fludex: a Materials were purchased, 12.000 mililitres at a cost of $252,000 There was no beginning inventory of materials on hand to start the month at the end of the month 2.600 mililitres of material remained in the warehouse unused c. The company employs 35 tab technicians to work on the production of Rudex Dung November, each worked on average of 160 hours at an average rate of $11 per hour d Variable manufacturing overhead is assigned to Rudex on the basis of direct labour hours Variable manufacturing overhead costs during November totalled $18,000 e Foged overhead is also allocated on the basis of direct lobour hours. The company had budgeted $12.000 for the month but underapplied it by $576 1. During November 3750 good units of Fodex were produced the normal volume for the month is 4.000 good units The company's management is anxious to determine the officiency of the activities surrounding the production of Fudex. The company's policy is to investigate any variance more than 2 different from the relevant standard Required: 1. For materials used in the production of Fludex a. Compute the price and quantity variances (Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect the zero variance).) Materials price variance B. Compute the price and quantity variances, indicate the effect of each variance by selecting for favourable. "U" for unfavourable, and "None" for no effect te rein variance) Material price variance Materials quantity arance 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? Yes NO 2. For direct labour employed in the production of Hudex a. Compute the rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable and "None for no effectie, zero variance)) a. Compute the rate and efficiency vanances (indicate the effect of each variance by selecting "Ffor favourable. "U" for unovourable, and "None" for no effect the vero variance) Labour mate variance Labour chciency viace b. In the past, the 35 technicians employed in the production of Fludex consisted of 20 senior technicians and 15 assistants During November the company experimented with only 15 senior technicians and 20 assistants in order to save costs. Would you recommend that the new labour mix be continued? Yes O NO 3-a. Compute the variable overhead spending and efficiency variances (Indicate the effect of each variance by selecting "P" for favourable. "U" for unfavourable, and "None" for no effect (e. zero variance)) Vanatie overhead spending van de Variable donc variance 3-b. This part of the question is not part of your Connect assignment 4. Compute the fixed overhead cost variances for November (Indicate the effect of each variance by selecting "F" for favourable "U" for unfavourable, and "None" for no effectie, zero variance)) Fixed overhead budget variance Fixed overhead volume variance Chapter 11 Variable that spending van wable overhead ethicence 3-b. This part of the question is not part of your Connect assignment 4. Compute the fixed overhead cost variances for November (Indicate the effect of each variance by selecting "F" for fovourable, "U" for unfavourable, and "None" for no effect (i... zero variance) Fixed overhead budget varance Fored overhead volume variance