Becton Labs, Incorporsted, produces various chemical compounds for industrial use. One compound, called Fludex, has the following

standard cost per unit:

During November, the following activity wos recorded related to the production of Fludex:

$.$ Materials purchssed, $14,000$ ounces at o cost of $$388,500.$

b$.$ There was no beginning inventory of materials; however, at the end of the month, $2,950$ ounces of msterial remsined in ending

inventory.

c$.$ The company employs $22$ lab technicians to work on the production of Fludex. During November, they each worked an average of

$150$ hours at an overage pay rote of $$11\mathrm{.}00$ per hour.

d$.$ Verisble manufscturing overhesd is assigned to Fludex on the bosis of direct labor$-$hours. Vorisble manufacturing overhesd costs

during November totaled $$5,500.$

e$.$ During November, the compsny produced $4,200$ units of Fludex.

Requlred:

For direct moterisls:

a$.$ Compute the price and quantity variances.

b$.$ The materisls were purchssed from a new supplier who is anxious to enter into a long$-$term purchsse contrsct. Would you

recommend the company sign the contract?

For direct labor:

a$.$ Compute the rote and efficiency veriences.

b$.$ In the psst$,$ the $22$ technicisns employed in the production of Fludex consisted of $5$ senior technicians snd $17$ sssistants. During

November, the company experimented with fewer senior technicisns and more sssistants in order to reduce isbor costs. Would

you recommend the new labor mix be continued?

Compute the variable overhead rate and efficiency variances.

Complete this question by entering your answers in the tabs below.

For direct materials, compute the price and quantity variances.

Note: 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.