Becton Labs, Incorporated, produces varlous chemical compounds for Industrlal use. One compound, called Fludex, has the following standard cost per unit: Durling November, the following actlvity was recorded related to the production of Fludex: a. Materlals purchased, 12,500 ounces at a cost of $282,500. b. There was no beginning Inventory of materlals; however, at the end of the month, 3,000 ounces of materlal remained in ending Inventory. c. The company employs 26 lab techniclans to work on the production of Fludex. Durling November, they each worked an average of 150 hours at an average pay rate of $14.00 per hour. d. Varlable manufacturing overhead is assigned to Fludex on the basls of direct labor-hours. Varlable manufacturing overhead costs during November totaled $8,000. e. During November, the company produced 4,100 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 the company slgn the contract? 2. For direct labor: a. Compute the rate and efficlency varlances. b. In the past, the 26 techniclans employed In the production of Fludex consisted of 4 senior techniclans and 22 assistants. During November, the company experimented with fewer senlor techniclans and more assistants in order to reduce labor costs. Would you recommend the new labor mlx be continued? 3. Compute the varlable overhead rate and efficlency varlances