Becton Labs, incotporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distling process. The company has developed standard costs for one unit of Fudex, as follows: During November, the following activity was recorded related to the production of Fudex a, Materials purchased, 10,500 ounces at a cost of $216,825. b. There was no beginning irventory of materials; however, th the end of the month, 2.600 ounces of material reriained in ending imventory, c. The company employs 20 lab technicians to work on the production of Fludex, During November, they each worked an average of 180 hours ot an average pay tote of $14.00 per houe. d. Voriable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufocturing overhead costs during November totaled $7,000 e. During Novembec, the company produced 3,700 units of Fludex. Required: 1. For direct materials a. Compute the price and quantity variances b. The motenals were purchased from a new supplior who is anxious to enter into a long-term purchase contract. Would you. recommend that the compary sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past the 20 technicians employed in the production of Fludex consisted of 3 senior technicians and 12 assistants. During November, the company experimented with fewer senior technicians and more assistants in ovder to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overheod rate and efficiency variances