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. Materials purchased, 14,000 ounces at a cost of $289,800. b. There was no beginning inventory of materlals, however, at the end of the month, 4,050 ounces of material remained in ending Inventory. c. The company employs 26 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $15.00 per hour. d. Varlable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Variable manufacturing overhead costs during November totaled $5,000. e. Durling November, the company produced 3,900 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity varlances. b. The materials were purchased from a new supplier who is andous 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 varlances. b. In the past, the 26 techniclans employed in the production of Fludex consisted of 6 senlor technicians and 20 assistants. During November, the company experimented with fewer senlor technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor m bx be continued? 3. Compute the varlable overhead rate and eficiency variances. Complate this question by enterling your answers in the tabs below. Inventory. c. The company employs 26 lab techniclans to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $15.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct laborhours. Varlable manufacturing overhead costs during November totaled $5,000. e. During November, the company produced 3,900 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 efficlency variances. b. In the past, the 26 technicians employed in the production of Fudex consisted of 6 senior techniclans and 20 assistants. During November, the company experimented with fewer senior techniclans and more assistants in order to reduce labor costs. Would you recommend that the new labor mbx be continued? 3. Compute the variable overhead rate and efficiency varlances. Complete this question by entering your answers in the tabs below. For direct materials, compute the price and quantity variances. (Indicate the offcct of each variance by sclecting "F" for favorable, "U" for uniavomble, and "wone" for no effect (l.e., zero variance). Input all amounts as positive values.) a. Materials purchased, 14,000 ounces at a cost of $289,800. b. There was no beginning inventory of materlals; however, at the end of the month, 4,050 ounces of material remained in ending Inventory. c. The company employs 26 lab technicians to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $15.00 per hour. d. Varlable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Varlable manufacturing overhead costs during November totaled $5,000. e. During November, the company produced 3,900 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity varlances. 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 varlances. b. In the past, the 26 technicians employed in the production of Fludex consisted of 6 senior techinicians and 20 assistants. Durthg November, the company experimented with fewer senior techniclans and more assistants in order to reduce labor costs. Would you recommend that the new labor mbx be continued? 3. Compute the variable overhead rate and efficiency varlances. Complete this question by entering your answers in the tabs below. For direct materials, the materials were purchased from a new suppller who is andous to enter into a long-term purchase contract. Would you recommend that the company slgn the contract? Inventory. c. The company employs 26 lab techniclans to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $15.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Variable manufacturing overhead costs during November totaled $5,000. e. During November, the company produced 3,900 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity varlances. b. The materlals 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 varlances. b. In the past, the 26 technicians employed in the production of Fludex consisted of 6 senior techniclans 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 varlances. Complete this question by entering your answers in the tabs below. For direct labor, compute the rate and efidency varlances. (Indleate the cffect of each variance by salecting "F" for faverablo, (or unipyorable, and "Nong" for no effect (l.e., zero variance). Input all amounts as positive values.) a. Materials purchased, 14,000 ounces at a cost of $289,800. b. There was no beginning inventory of materlals; however, at the end of the month, 4,050 ounces of material remained in ending inventory. c. The company employs 26 lab techniclans to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $15.00 per hour. d. Varlable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Variable manufacturing overhead costs during November totaled $5,000. e. During November, the company produced 3,900 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity varlances. b. The materials were purchased from a new supplier who is anxlous 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 26 techniclans employed in the production of Fludex consisted of 6 senior techniclans 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 mbx be continued? 3. Compute the varlable overhead rate and efficiency varlances. Complete this question by entering your answers in the tabs below. In the past, the 26 technidans employed in the production of fludex consisted of 6 senlor technicians and 20 assistants. During November, the company experimented with fower senlor technidans and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? inventory. c. The company employs 26 lab techniclans to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of $15.00 per hour. d. Variable manufacturing overhead is assigned to Fudex on the basis of direct labor hours. Varlable manufacturing overhead costs during November totaled $5,000. e. During November, the company produced 3,900 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 varlances. b. In the past, the 26 technicians employed in the production of Fludex consisted of 6 senior techniclans and 20 assistants. During November, the company experimented with fewer senlor techniclans and more assistants in order to reduce labor costs. Would you 3. Compute the varlable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Compute the varlable overhead rate and efficlency variances. (Indicate the cficct of each varlance by selecting "F" for favonablo, "U" for unfavorable, and "None" for no effect (l.0., zero variance), input all amounts as positlve valucs.)