Becton Labs, Inc., 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 feitows: Standard Quantity Direct materials DEADLabor Variable manufacturing overhead Total standard cost per unit 2.00 ounces 0.50 hours 0.50 hours Der Price or Rate $30.00 per ounce $14.00 per hour $ 3.40 per hour Standard Cout $60.00 7.00 1.70 $68.70 During November, the following activity was recorded related to the production of Fludex: 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 ountes of material remained in ending c. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead casts during November totaled $4,700. e. During November, the company produced 3,400 units of Fiudex. 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? U LUMIVU Yory VIVES 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 producteur Fudex consisted of 4 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, ances Complete this question by entering your answers in the tabs below. Reg 1 Reg 16 Reg 2 Reg 20 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 (1o, zero variance). Input all amounts as positive values.) Material price variance Mas quantity variance Reg 18 )