Becton Labs, Incorporated, produces vorious 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 Fludex: a. Materials purchased, 12,500 ounces at a cost of $282,500. b. There was no beginning inventory of materials; however, at the end of the month, 3,000 ounces of material remained in ending inventory. c. The company employs 26 lab technicians to work on the protuction of Fludex. During November, they esch worked an average of 150 hours at an average pay rate of $14.00 per hour, d. Variable manufocturing ovehead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November tothied $8,000. e. During Nowember, the company produced 4.900 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materin's were purchased from a new supplier who is ankious to enter into a iong-term purchase contract. Would you recommend that the company rign the contract? 2. For direct labor: a. Compute the rate and efficiency variances: b. In the past, the 26 technicians employed in the production of Fludex consisted of 4 senior technicians and 22 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 ovechead rate and efficiency variances