Complete this question by entering your answers in the tabs below. For direct materials, compute the price and quantity variances. $($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.$)$ For direct materials, 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?

Yes

No For direct labor, compute the rate and efficiency variances. $($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.$)$In the past, the $20$ technicians employed in the production of Fludex consisted of $7$ 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 that the new labor mix be continued?

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