Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using on claborate 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, 12,500 ounces at a cost of $305,625. b. There was no beginning inventory of materials; however, at the end of the month, 2,800 ounces of material remained in ending inventory. c. The company employs 21 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 $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 4,200 units of Fludex. 1. For direct motertals: 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 post, the 21 technicians employed in the production of Fludex consisted of 4 senior techricians and 17 assistants: During November, the compony experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor in x be continued? 3. Compute the yariable overhead rate and efficiency variances