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 follows: Standard Quantity or Hours 2.30 ounces Direct materials Standard Price or Rate $17.00 per ounce $13.00 per hour $ 2.50 per hour Standard Cost $39.10 7.80 1.50 0.60 hours Direct labor Variable manufacturing overhead Total standard cost per unit 0.60 hours During November, the following activity was recorded related to the production of Fludex inventory a. Materials purchased, 11,500 ounces at a cost of $178,825. b. There was no beginning inventory of materials, however, at the end of the month, 3150 ounces of material remained in ending c. The company employs 17 la 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 costs during November totaled $3,000 e. During November, the company produced 3,500 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-ter recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 17 technicians employed in the production of Fludex consisted of 4 senior November, 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 Reg 3 For direct materials, compute the price and quantity variances. (Indicate the effect of each varian favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance). Input all amounts as Materials price variance Materials quantity variance Class https://www.apply... https://portal.myp. 154 https://studentaid... https://ww Ths. 10,13) 150 pts. Due: June 17 Saved muun murov PIC DIVU U U ry purv recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 17 technicians employed in the production of Fludex consisted of 4 senior technici November, 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. B 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 variance by select "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 17 technicians employed in the production of Fludex consisted of 4 se November, the company experimented with fewer senior technicians and more assistar 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 Compute the variable overhead rate and efficiency variances. (Indicate the effect of each va favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amou Variable overhead rate variance Variable overhead efficiency variance
