Check my work Becton Labs, Inc., produces various chemical compounds for industrial use. One compound called Fludex is prepared using on elaborate distilling process. The company has developed standard costs for one unit of Fludex as follows: Standard Quantity Standart Price Standard or Hours or Rate Direct materials 2.20 ounces 523.00 per ounce $50.00 Direct labor 0.00 hours $14.00 per hour H.40 Variable manufacturing overhead 0.60 hours $ 2.50 per hour 1.58 Total standard cost per unit $60.50 cost 0:59 STI During November, the following activity was recorded related to the production of Fiudex a. Materials purchased. 12,000 ounces at a cost of $259,800 b. There was no beginning inventory of materials; however at the end of the month. 3.100 ounces of material remained in ending The company employs 25 lab technicians to work on the production of Fiudex. During Wember they each worked an average of d. Variable manufacturing overhead is assigned to Fludex on the basis of direct lobor-hours, Variable manufacturing overhead costs during November totaled $4200 e. During November, the company produced 4,000 units of Fludex. Check my work 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 that the company sign the contract? 2. For direct labor a. Compute the rate and efficiency variances b. In the past, the 25 technicians employed in the production of Fiudex consisted of 4 senior technicians and 21 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. STA Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2A Reg 28 Reg 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 (le, zero variance). Input all amounts as positive values.) Materials price variance Materiais quantity variance