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 Standard Price Standard or Hours or Rate Cost Direct materiais 2.20 ounces $23.ee per ounce $ 50.60 Direct labor 0.70 hours $12.ee per hour 8.40 Variable manufacturing overhead 0.70 hours $ 3.ee per hour 2.10 Total standard cost per unit $61.10 During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 11,000 ounces at a cost of $237,600. b. There was no beginning inventory of materials; however, at the end of the month, 2.650 ounces of material remained in ending Inventory. c. The company employs 18 lab technicians to work on the production of Fiudex. During November, they each worked an average of 190 hours at an average pay rate of $10.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,200. e. During November, the company produced 3,750 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? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 18 technicians employed in the production of Fiudex consisted of 5 senior technicians and 13 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. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Reg 28 Reg 3 For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (le, zero variance). Input all amounts as positive values.) Laborrate variance Labor officiency variance