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: During November, the following activity was recorded related to the production of Fludex: a. Materiats purchased, 10000 ounces at a cost of $197,000 b. There was no beginning inventory of materials, nowever, at the end of the month, 2,550 ounces of materiat remained 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 170 houre at an average pay rate of $11.50 per hour. d Variable manufacturing overhead is assigned to fludec on the basis of direct labor-hours Variable manufacturing overticad costs durino November totaled $4,800. e. During November, the company produced 3,700 units of Fludex Requited: 1. For direct materials: a. Compute the pice and quantity variances b. The materials were purchased from a new supplier who is anxicus to enter into a long-term purchase controct Would youl 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 6 senior technicians and 18 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you fecommend 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. For direct materials, compute the price and quantity variances. zero vartanca), Input all amounts an positive values. a. Lompute 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 6 senior technicians and 18 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. For direct materials, the materials were purchased from a new supplier who is anxious to enter into a long-term purchaso contract. Would you recommend that the company sign the contract? - Compute the pnce 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 Fiudex consisted of 6 senior technicians and 18 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. For direct labor, compute the rate and efficiency variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no eiffect (hie. zero varlance), Input all amounts as positive values. 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 6 senior technicians and 18 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. In the past, the 24 technicians employed in the production of Fludex consisted of 6 senior technicians and 18 assistants. During November, the company experimented with fower senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? Would you recommend that the now labor mix be continued? 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 6 senior technicians and 18 ass stants. 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. Compute the variable overhead rate and effidency variances. Note: Indicate the effect of each variance by selecting 'F" for farorable, "U" for unfavorable, and "None" for tho etfect flice. zero varlance). Input all amounts as positive values
