1. Becton Labs, Inc., produces a compound called Fludex. The company has developed standard costs for one unit of Fludex as follows:

   	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
   Direct materials	2.5 oz	$20 per oz	$50
   Direct labor	1.4 hours	$22.5 per hour	$31.5
   Variable overhead	1.4 hours	$3.5 per hour	$4.9
   Total standard cost per unit			$86.4

   During November, the company produced 3,750 units of Fludex.

   The company purchased 12,000 ounces of materials at a cost of $225,000. There was no beginning inventory of materials; however, at the end of the month, 2,500 ounces of materials remained in ending inventory. What was the companys materials price variance for November?

   	A.	$15,000 F
   	B.	$15,000 U
   	C.	$2,500 F
   	D.	$2,500 U

10 points

QUESTION 12

1. Becton Labs, Inc., produces a compound called Fludex. The company has developed standard costs for one unit of Fludex as follows:

   	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
   Direct materials	2.5 oz	$20 per oz	$50
   Direct labor	1.4 hours	$22.5 per hour	$31.5
   Variable overhead	1.4 hours	$3.5 per hour	$4.9
   Total standard cost per unit			$86.4

   During November, the company produced 3,750 units of Fludex.

   The company purchased 12,000 ounces of materials at a cost of $225,000. There was no beginning inventory of materials; however, at the end of the month, 2,500 ounces of materials remained in ending inventory. What was the companys materials quantity variance for November?

   	A.	$15,000 F
   	B.	$15,000 U
   	C.	$2,500 F
   	D.	$2,500 U

10 points

QUESTION 13

1. Becton Labs, Inc., produces a compound called Fludex. The company has developed standard costs for one unit of Fludex as follows:

   	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
   Direct materials	2.5 oz	$20 per oz	$50
   Direct labor	1.4 hours	$22.5 per hour	$31.5
   Variable overhead	1.4 hours	$3.5 per hour	$4.9
   Total standard cost per unit			$86.4

   During November, the company produced 3,750 units of Fludex.

   The company purchased 12,000 ounces of materials at a cost of $225,000. There was no beginning inventory of materials; however, at the end of the month, 2,500 ounces of materials remained in ending inventory. 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?

   	A.	Yes.
   	B.	No.
   	C.	Signing the contract does not make a difference.
   	D.	It cannot be determined without more information.