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:

During November, the following activity was recorded related to the production of Fludex:

a$.$ Materials purchased, $12,500$ ounces at a cost of $$305,625.$

b$.$ There was no beginning inventory of materials; however, at the end of the month, $2,800$ ounces of material remained in ending

inventory.

c$.$ The company employs $21$ lab technicians to work on the production of Fludex. During November, they each worked an average of

$150$ hours at an average pay rate of $$12\mathrm{.}00$ per hour.

d$.$ Variable manufacturing overhead is assigned to Fludex on the basis of direct labor$-$hours. Variable manufacturing overhead costs

during November totaled $$4,200.$

e$.$ During November, the company produced $4,200$ units of Fludex. $1.)$ For Direct Materials : a$.)$ compute the price and quantity variances b$.)$ the materials were purchased from a new supplier who is anixous to enter into a long$-$term purchase contract. Would you reccomend the company sign the contract? $2.)$ For direct labor: compute the rate and effciencey variances. $3.)$ compute the various overhead rate and efficiencey variances.