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 materials 2.40 ounces $21.00 per ounce $50.40 Direct labor 0.80 hours $15.00 per hour 12.00 Variable manufacturing overhead 0.80 hours $ 3.50 per hour 2.80 Total standard cost per unit $65.20 During November, the following activity was recorded related to the production of Fludex: inventory a. Materials purchased, 13,500 ounces at a cost of $266,625. b. There was no beginning inventory of materials; however, at the end of the month, 4.200 ounces of material remained in ending c. The company employs 24 lab technicians to work on the production of Fiudex. During November, they each worked an average of 140 hours at an average pay rate of $14.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,800. e. During November, the company produced 3,800 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 24 technicians employed in the production of Fludex consisted of 4 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. Reg 1A Reg 16 Reg 2A Rega Reg 20 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 effect (ie, zero variance). Inout all amounts as positive values Materials price variance Material quantity variance Reg 10 > 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 Direct materials or Rate Cost 2.40 ounces $21.00 per ounce $50.40 Direct labor 0.80 hours $15.00 per hour 12.00 Variable manufacturing overhead 0.80 hours $ 3.50 per hour 2.80 Total standard cost per unit $65.20 During November, the following activity was recorded related to the production of Fludex a. Materials purchased 13,500 ounces at a cost of $266,625. b. There was no beginning inventory of materials; however, at the end of the month, 4,200 ounces of material mained in ending Inventory c. The company employs 24 lab technicians to work on the production of Fludex. During November, they each worked an average of 140 hours at an average pay rate of $14.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,800. e. During November, the company produced 3,800 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 24 technicians employed in the production of Fludex consisted of 4 senor 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 conti ed? 2. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Reg 1A Reg 18 Red 2A Reg 26 Reg 3 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 effect (Le.. ero variance), Input all amounts as positive values.) Materials price variance Materials quantity variance Reg 10 Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B Req3 For direct materials, compute the price and quantity variances. (Indicate the effect of each favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amour Materials price variance Materials quantity variance Reg 1A Req 1B > Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3 For direct materials, the materials were purchased from a new supplier who is anxious to enter inte contract. Would you recommend that the company sign the contract? 10Yes Ono Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Req 28 Req3 For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by se "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive value Labor rate variance Labor efficiency variance Reg 1B Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Req 2A Req 2B Req3 In the past, the 24 technicians employed in the production of Fludex consisted of 4 senior technicians a During November, the company experimented with fewer senior technicians and more assistants in orde costs. Would you recommend that the new labor mix be continued? Ores ONO ( Req 2A Req3 > Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 28 Req3 Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by s favorable, "U" for unfavorable, and "None" for no effect (.e, zero variance). Input all amounts as posit Variable overhead rate variance Variable overhead efficiency variance Han Products manufactures 35,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.90 12.00 2.10 9.00 $ 27.00 An outside supplier has offered to sell 35,000 units of part 5-6 each year to Han Products for $23 per part. If Han Products accepts this offer the facilities now being used to manufacture part S6 could be rented to another company at an annual rental of $85,000. However. Han Products hos determined that two-thirds of the fixed manufacturing overhead being applied to part 5-6 would continue even if port 5-6 were purchased from the outside supplier. Required: What is the financial advantage (disadvantage) of accepting the outside suppler's offer? Han Products manufactures 35,000 units of part 5-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per part $ 3.90 12.00 2.10 9.00 $ 27.00 An outside supplier has offered to sell 35,000 units of part 5-6 each year to Han Products for $23 per part. If Han Products accepts this offer, the facilities now being used to manufacture part S-6 could be rented to another company at an annual rental of $85,000 However. Han Products has determined that two-thirds of the fixed manufacturing overhead being applied to part S-6 would continue even if part 5-6 were purchased from the outside supplier Required: What is the financial advantage (disadvantage) of accepting the outside supplier's offer