Becton Labs, Inc. produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using on elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity Standard Price Standard or Hours or Rato Coat Direct materials 2.50 ounces $22.00 per ounce $55.00 Direct labor 0.90 hours $16.00 per hour 14.40 Variable manufacturing overhead 0.90 hours $ 2.00 per hour 1.00 Total standard cost per unit 571.20 During November, the following activity was recorded related to the production of Fiudex a. Materials purchased, 14,000 ounces at a cost of $289,800 b. There was no beginning inventory of materials: however, at the end of the month. 4,050 ounces of material remained in inding Inventory c. The company employs 26 lab technicians to work on the production of Fiudex. During November, they each worked on average of 150 hours at an average pay rate of $15.00 per hour d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5,000. e. During November, the company produced 3,900 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: Comnuite the rate and efficiency variances Check my work 1 5 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 1. Compute the rate and efficiency variances b. In the past, the 26 technicians employed in the production of Fudex consisted of senior technicians and 20 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 antering your answers in the tabs below. Req IA Req 10 Red 2A Reg 20 Req3 For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and None for no effectie, zero variance). Input all amount as positive values.) Material price variance Material quantity variance CH D. I ne materials were purchased from a new suppuer wno 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 26 technicians employed in the production of Fludex consisted of 6 senior technicians and 20 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. 26 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 D. ine materiais were purchasea from a new supplier wno 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 26 technicians employed in the production of Fludex consisted of 6 senior technicians and 20 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 Compute the variable overhead rate and efficiency 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.) Variable overhead rate variance Variable overhead officiency variance