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: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.20 ounces 2.60 hours 8.60 hours Standard Price or Rate $23.00 per ounce $14.80 per hour $ 2.50 per hour Standard Cost $ Se.Ge 8.48 1.se $ 60. Se 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 $1200 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 13 Reg 2A Req 2B Req3 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 (i.e., zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance 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? Yes ONO 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 (.e., zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance 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 ONO 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 i.e., zero variance). Input all amounts as positive values.) Variable overhead rate variance Variable overhead efficiency variance Becton Laos. Inc.produces various chemical compounds for industrial use. Ore compound called Fudex is prepared using an aborate closing process. The company has desolaped standard costs for one unit of Fluidex, as follows: Standard Cost Standard Day OF HOUS 2.20 urce 8.60 hours 2. eur Direct materials Direct labor Wer nuturing verhead Total standard cost per wit Sandara Prat $20.00 per Ounce 514.00 per hour 8.4 1.5a 5 68.53 During November, the ta long activity was recorded related to the production of Flute c. Materials ourche, 2.000 uur la cost of $259,800 6. There was no beginning inventory of matenals however at the erd of the month. 3.100 ounces of material remenedin ending Inventory c. The company employs 25 Isbrechnicians to work on the production of ludex. During November they each worked on average of 130 hours at an average pay rate of 5:200 per hour. d. Vanable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Vanable manufacturing overhead COSIS ouring November totaled $4.200 e. During November the company produces 4000 units of Fludex Required: 1. For det melle a. Compute the pace and quantity vanance The materials were purchased from a rew supplier who is an ous to enter into a long-term purchase contact would you recommend that the company sign the contract? 2 For direct labor Compute the rate and efficiency variances b. In the 25t, the technicians employed in the production et ludex consisted of 4 senier technicians and 21ssistents. During November, the company experimented with four senior tactinidians and more soltants in order to reduce labor costs. Would you recommend that the new labor mix be connued? 3. Compute the variable overhead rate and efficiency vrience: Complete this question by entering your answers in the tabs below. By Ben R1 For direct materials, computate price and quantity rines Trirate the effect of each variance by selecting for favorable, 'U' for unfavorable, and one for no effect ( en variance). Input al amounts es positive values.) Wawilice Masal qual variante For direct materies, the materials were purchased from a new supplier who is amcious to enter into a long term purchase contract. Would you recommend that the company sign the contrace? ves ON For direct labor compute the rate and efficiency variances (Trirate the effect of each variance hy selecting 'F' for favorable V for unfavorable and "None' for no effectie, zero wariance). Tnput all amounts as positive values.) Labor oficiency varence In the past, the 25 techniciens employed in the production of Hudex consisted of 4 serior technicare s-d 21 starts During November the company expermented with fewer senior technicians and more starts in order to reduce labor costs. Would you recommend that the new labor mix be continued OY Comate the verable serhead rate and Friency Vines, Indirate the effect of each yerineb pecting For favorable for unfavorable and Tone' for no effect (ie ere variance) ou all amounts es positive values Vrate vahende waren Vorable overhead licency