Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distiling 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 ruacex b. There was no beginning inventory of materials, however, at the end of the month. 3,150 ounces of material remained in ending a. Materials purchased, 11,500 ounces at a cost of 5178,825 c. The company employs 17 lab technicians to work on the production of Fludex. Dunng November, thicy each worked an average of inventory. d. Variable manufacturing overhead is assigned to Fludex on the basis af direct labor-hours Vartable manulacturing overhead costs 160 hours at an average pay rate of $11.50 per hour. during November totaled $3,000 e. During November, the company produced 3,500 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 17 technicians employed in the production of Fludex consisted of 4 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would yo 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 efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, " U " for unfivorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.)