Becton Labs, the produces various chemical compounds for industrial use one compound, called Pudex is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludes, as follows Standard Quantity Standard Price Standard or or hate Direct materials 2.10 ounces $22.00 per ce $46.20 Direct labor 0.30 hours $15.6 per hour 12:00 Variable manufacturing overhead 0.88 hours $ 2.50 per hour 2200 Total standard cost per unit $60.20 During November, the following activity was recorded related to the production of Fiudex a. Materials purchased. 10.500 ounces at a cost of $216,825 b. There was no beginning inventory of materials, however, at the end of the month 2.600 ounces of material remained in ending Inventory The company employs 20 lab technicians to work on the production of Fludex During November, they each worked an average of 180 hours at an average pay rate of $14.00 per hour d. Variable manufacturing overhead is assigned to Fiudex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $2,000 c. During November, the company produced 3700 units of Flodex Required: 1. For direct materials a Compute the price and quantity variances b. The materials were purchased from a new suppler who is anxious to enter into a long term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor