Becton Labs, Incorporated, produces varlous chemical compounds for Industrlal use. One compound, called Fludex, Is prepared using an elaborate distilling process. The company has developed standard costs for one unlt of Fludex, as follows: Durlng November, the following actlvity was recorded related to the production of Fludex: a. Materlals purchased, 10,000 ounces at a cost of $287,000. b. There was no beginning Inventory of materlals; however, at the end of the month, 3,000 ounces of materlal remalned in ending Inventory. c. The company employs 20 lab techniclans to work on the production of Fludex. During November, they each worked an average of 130 hours at an average pay rate of $12.00 per hour. d. Varlable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Varlable manufacturing overhead costs during November totaled $4,700. e. Durlng November, the company produced 3,400 unlts of Fludex. Required: 1. For direct materlals: a. Compute the price and quantity varlances. b. The materlals 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 varlances. b. In the past, the 20 techniclans employed In the production of Fludex consisted of 4 senior techniclans and 16 assistants. During November, the company experimented with fewer senior technlclans and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the varlable overhead rate and efficlency varlances. Complete this question by entering your answers in the tabs below. For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. 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 unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)