c. The company employs 17 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at an average pay rate of $11.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $3,000 e. During November, the company produced 3,500 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 17 technicians employed in the production of Fludex consisted of 4 senior technicians and 13 assistants. During November, the company experimented with fower senior technicians and more assistants in order to reduce labor costs. Would you recommend the new labor mix be continued? 3. 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. 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., rero variance), Input all amounts as positive values. inventory. c. The company employs 17 lab technicians to work on the production of Fludex. During November, they each worked an average 160 hours at an average pay rate of $11.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead cos during November totaled $3,000. e. During November, the company produced 3,500 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 17 technicians employed in the production of Fludex consisted of 4 senior technicians and 13 assistants. Du November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. W you recommend the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. In the past, the 17 technicians employed in the production of Fludex consisted of 4 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend the new labor mix be continued? c. The company employs 17 lab techniclans to work on the production of Fludex. During November, they each worked an average of 160 hours at an average pay rate of $11.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $3,000. e. During November, the company produced 3,500 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 17 technicians employed in the production of Fludex consisted of 4 senior technicians and 13 assistants. Durin November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Woi you recommend the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Compute the variable overhead rate and efficiency 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. 160 hours at an average pay rate of $11.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufac during November totaled $3,000. e. During November, the company produced 3,500 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase cc recommend the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 17 technicians employed in the production of Fludex consisted of 4 senior technicians ar November, the company experimented with fewer senior technicians and more assistants in order to re you recommend the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. For direct labor, compute the rate and efficiency variances. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no ef zero variance). Input all amounts as positive values. recommend the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 17 technicians employed in the production of Fludex consisted of 4 senior technicians and 13 assistants, Durin November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Wou you recommend the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend the company sign the contract? Problem 10-14 (Algo) Basic Variance Analysis [LO10-1, LO10-2, LO10-3] Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, has the following standard cost per unit: During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 11,500 ounces at a cost of $178,825. b. There was no beginning inventory of materials; however, at the end of the month, 3,150 ounces of material remained in ending inventory. c. The company employs 17 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at an overage pay rate of $11.50 per hour d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $3.000. e. During November, the company produced 3,500 units of Fudex