Check my work Becton Labs, Inc., produces vanous chemical compounds for Industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows Standard Quantity Standard Pri Cost s55.28 Direct saterials Direct labor Variable manufacturing overhead Total standard cost per unit 2.38 ounces e.88 hours 8.80 hours 24.80 per ounce $15.ee per hour $ 3.58 per hour s78.e0 During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 12.500 ounces at a cost of $282,500 b There was no beginning inventory of matertals, however, at the end of the month, 3,000 ounces of material remained in c The company employs 26 lab technicians to work on the production of Fludex. During November, they each worked an d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead e During November, the company produced 4100 units of Fludex ending Inventory average of 150 hours at an average pay rate of $14.00 per hour costs during November totaled $8,000 Required: 1 For direct materials: a. Compute the price and quantity vartances. b. The materials were purchased from a new supplier who is andous 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 efficiency varsances b. In the past, the 26 technicians employed in the production of Fludex consisted of 4 senior technicians and 22 assistants During November, the company expertmented with fewer senlor technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the vaniable overhead rate and efficiency variances Complete this question by entering your answers in the tabs below. Req 2A Req 28 Req 3 For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "for favorable,-u-for unfavorable, and "None-for no effect (i.e., zero variance). Input all amounts as positive values.) Prev 1 of 5 Next> China Lake O Type here to search