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 Price Standard Quantity or Hours 2.60 ounces 8.60 hours 8.60 hours Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit $ 52.ee $20.00 per ounce $16.00 per hour $.4.5e per hour During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 13.000 ounces at a cost of $244,400. 6. There was no beginning inventory of materials: however, at the end of the month, 3.300 ounces of material remained in ending inventory c. The company employs 20 lab technicians to work on the production of Fiudex. During November, they each worked an average of 150 hours at an average pay rate of $14.00 per hour d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,500 e. During November, the company produced 3.600 units of Fludex. Required: 1. For direct materials: 18. 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? T 12. For direct labore Comoute the rate and efficiency variances in the past the 20 technicians employed in the production of Fiudex consisted of 4 senior technicians and 16 assistants During November the company experimented with fewer senior technicians and more state in order to reduce costs, Would you recommend that the new sbor mix be continued Compute the variable oemend rate and efficiency 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 20 technicians employed in the production of Fludex consisted of 4 senior technicians and 16 assistants. DL November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Wou 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 Req 18 Reg 2A Req 2B Reg 3 For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "Ufor unfavorable, and "None" for no effect the zero variance). Input all amounts as positive values. Materials price variance Materials quantity variance Reg 1B > 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. 5. In the past, the 20 technicians employed in the production of Fludex consisted of 4 senior technicians and 16 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, for unfavorable, and "None' for no affect (1... zero variance), Input all amounts positive value) 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 20 technicians employed in the production of Fludex consisted of 4 senior technicians and 16 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 1B Req 1A Reg 2A Reg 28 Real for Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting favorable, "U" for unfavorable, and "None" for no effect (I... zero variance). Input all amounts as positive values S P Variable overhead rate variance Variable overhead efficiency variance