Becton Labs, Incorporoted, produces various chemicnl compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The compory 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, 13.000 ounces at a cost of $244,400. b. There was no beginning inventory of materlals, howevec at the end of the month, 3,300 ounces of materlai remained in ending inventory. c. The compary employs 20lab technicians to work on the production of Fudex. During November, they each worked an average of 150 hours at an average pay rote of $14.00 per hour. d. Variable manufocturing overhead is assigned to fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,500 e. During November, the company produced 3,600 units of Fudex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a sew supplier who is anwious 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 efficioncy variances: b. In the past, the 20 technicians employed in the production of Fudex consisted of 4 senior technicians and 16 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 overhead rate and efliciency variances: 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 (1.e., zero variance). Input all amounts as positive values.)