{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-27T23:13:20-04:00", "answer_date": "2024-05-27 23:13:20", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1806656", "url": "\/study-help\/questions\/becton-labs-incorporated-produces-various-chemical-compounds-for-industrial-use-1806656", "question_creation_date_js": "2024-05-27T23:13:20-04:00", "question_creation_date": "May 27, 2024 11:13 PM", "meta_title": "[Solved] Becton Labs, Incorporated, produces vario | SolutionInn", "meta_description": "Answer of - Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is pre | SolutionInn", "meta_keywords": "becton,labs,incorporated,produces,various,chemical,compounds,industrial,one,compound,called,fludex", "question_title_h1": " Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has", "question_title": " Becton Labs, Incorporated, produces various chemical compounds for industrial use. One", "question_title_for_js_snippet": "Becton Labs, Incorporated, 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 Standard Price or Hours Rate Direct materials Direct labor 2 10 ounces 0 80 hours Variable manufacturing overhead Total standard cost per unit 0 80 hours $ 22 00 per ounce $ 15 00 per hour $2 50 per hour Standard Cost $ 46 20 12 00 2 00 $ 60 20 During November, the following activity was recorded related to the production of Fludex a Materials purchased, 10,500 ounces at a cost of $216,825 b There was no beginning inventory of materials however, at the end of the month, 2,600 ounces of material remained in ending inventory c The company employs 20 lab technicians to work on the production of Fludex During November, they each worked an average of 180 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 $7,000 e During November, the company produced 3,700 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 20 technicians employed in the production of Fludex consisted of 8 senior technicians and 12 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 Req 1B Req 2A Req 2B Req 3 For direct materials, compute the price and quantity variances Note 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 Req 1A Req 1B ", "question_description": "\"image\"image\"image", "transcribed_text": "Becton Labs, Incorporated, 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 Standard Price or Hours Rate Direct materials Direct labor 2.10 ounces 0.80 hours Variable manufacturing overhead Total standard cost per unit 0.80 hours $ 22.00 per ounce $ 15.00 per hour $2.50 per hour Standard Cost $ 46.20 12.00 2.00 $ 60.20 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 10,500 ounces at a cost of $216,825. b. There was no beginning inventory of materials; however, at the end of the month, 2,600 ounces of material remained in ending inventory. c. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 180 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 $7,000. e. During November, the company produced 3,700 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 20 technicians employed in the production of Fludex consisted of 8 senior technicians and 12 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 Req 1B Req 2A Req 2B Req 3 For direct materials, compute the price and quantity variances. Note: 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 < Req 1A Req 1B >", "related_book": { "title": "Fundamental accounting principle", "isbn": "1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587", "edition": "21st edition", "authors": "John J. Wild, Ken W. Shaw, Barbara Chiappetta", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/267.jpg", "uri": "\/textbooks\/fundamental-accounting-principle-21st-edition-267", "see_more_uri": "" }, "free_related_book": { "isbn": "0367579057", "uri": "\/textbooks\/ecologically-based-municipal-land-use-planning-1st-edition-978-0367579050-178676", "name": "Ecologically Based Municipal Land Use Planning", "edition": "1st Edition" }, "question_posted": "2024-05-27 23:13:20", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/managerial-accounting-tools-for-business-decision-making\/in-a-plant-producing-multiple-products-would-absorption-costing-overcost-1278092", "description": "In a plant producing multiple products, would absorption costing overcost or undercost the more complex products? 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