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 Pudex, as follows: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.20 ounces 0.60 hours 0.60 hours Standard Price Or Rate $23.00 per ounce $14.00 per hour $ 2.50 per hour Standard Cont $50.60 8.40 1.50 560.50 During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 12,000 ounces at a cost of $259,800. b. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in ending Inventory c. The company employs 25 lab technicians to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12.00 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 4,000 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-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 25 technicians employed in the production of Rudex consisted of 4 senior technicians and 21 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. Red LA Reg 1B Req ZA Reg 28 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 (.e., zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance Reg 13 > 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 2.20 ounces 0.60 hours 0.60 hours Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Price or Rate $23.00 per ounce $14.00 per hour $ 2.50 per hour Standard Cost $50.60 8.40 $60.50 During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 12,000 ounces at a cost of $259,800. b. There was no beginning inventory of materials; however, at the end of the month, 3,100 Ounces of material remained in ending inventory c. The company employs 25 lab technicians to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12.00 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 4,000 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-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 25 technicians employed in the production of Fludex consisted of 4 senior technicians and 21 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 Req 2B Req3 For direct materials, 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? eg za 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 2.20 ounces 0.60 hours 0.60 hours Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Price or Rate $23.00 per ounce $14.00 per hour $ 2.50 per hour Standard Cost $50.60 8.40 1.50 $60.50 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $259,800. b. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in ending inventory. c. The company employs 25 lab technicians to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12.00 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 4,000 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-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 25 technicians employed in the production of Fludex consisted of 4 senior technicians and 21 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. Reg 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 (ie, zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance 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 2.20 ounces 0.60 hours 0.60 hours Standard Price Or Rate $23.00 per ounce $14.00 per hour $ 2.50 per hour Standard Cost $50.60 Direet material Direct labor Variable manufacturing overhead Total standard cost per unit .40 1.50 $60.50 During November, the following activity was recorded related to the production of Fludex: 12.000 a. Materials purchased, 12,000 ounces at a cost of $259,800. b. There was no beginning inventory of materials; however, at the end of the month, 3,100 ounces of material remained in ending inventory C. The company employs 25 lab technicians to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12,00 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 4,000 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-term purchase contract. Would you recommend that the company sign the contract? For d et ene 25 any ex 2. For direct labor a. Compute the rate and efficiency variances. b. In the past, the 25 technicians employed in the production of Fludex consisted of 4 senior technicians and 21 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. Reg 1A Reg 1B Reg 2A Req 28 Req3 In the past, the 25 technicians employed in the production of Fludex consisted of 4 senior technicians and 21 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? Yes TO NO 28 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 ludex, as follows: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.20 ounces 0.60 hours 0.60 hours Standard Price or Rate $23.00 per ounce $14.00 per hour $ 2.50 per hour Standard Cost $50.60 8.40 1.50 $60.50 During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 12,000 ounces at a cost of $259.800. b. There was no beginning inventory of materials, however, at the end of the month, 3,100 ounces of material remained in ending inventory loys 25 lab technicians to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12.00 per hour d. Variable manufacturing overhead is assigned to Fludex on labor-hours. Variable manufactu uring overhead costs during November totaled $4,200. e. During November, the company produced 4,000 units Required: 1. For direct materials: a. Compute the price and quantity variances, b. The materials were purchased from a new supplier who is recommend that the company sign the contract? DES 2 X OOR 65 8 05 6 a long-term purchase contract. Would 2. For direct labor a. Compute the rate and efficiency variances. b. In the past, the 25 technicians employed in the productio November, the company experimented with fewer senior te recommend that the new labor mix be continued? echnicians and 21 assistants. During order to reduce labor costs. Would you 3. Compute the variable overhead rate and efficiency Complete this question by enterin SEE Reg 1A Reg 1B 2 Compute the variabl favorable, "U" for unfa 22 variance by selecting "F" for amounts as positive values.) Variable overhead rate variance Variable overhead efficiency variance