Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, has the following standard cost per unit: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Standard Price or Standard Hours Rate Cost $2\mathrm{.}20$ ounces $ $23\mathrm{.}00$ per ounce $ $50\mathrm{.}600\mathrm{.}60$ hours $ $14\mathrm{.}00$ per hour $8\mathrm{.}400\mathrm{.}60$ hours $ $2\mathrm{.}50$ per hour $1\mathrm{.}50$ $ $60\mathrm{.}50$ During November, the followirk activity was recorded related to the production of Fludex: a$.$ Materials purchased, $12,000$ ounces at a cost of $$259,800.$ b$.$ There was no beginning inventory of materials; however, at the end of the month, $3,100$ ounces of material remained in ending inventory. c$.$ The company employs $25$ lab technicians to work on the production of Fludex. During November, they each worked an average of $130$ hours at an average pay rate of $$12\mathrm{.}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 $$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 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 Flude 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 the new labor mix be continued? $3.$ Compute the variable overhead rate and efficiency variances.