Dectan Lobsi heocporoted. produces vsrious chemichl compounds fot industriai ase. One compound caied fudek. is prepsied using an elaborate distiking process. The ceenpeay hes developed standord cost for one unit of fludex es follgws: During No-ember, the tolowing sconcr was recorded related to the arcductina af Fudien. 1. Mmeninh purchajed 12.000 ovinces of fi cost of 1225,000 t. Thein was no beginning invemory of moteriak. howevec, at the and of the marth, 2.500 ounces of materiat remained it endeng inveencey 2. The company employs 35 lob techaxians towork on the preduction of Pudes. Diving Norember, mey ench work ad an nyerege of 160 hours af ar byerage pey toke of $22 per hout curap November totted 518. 200 - Duting November, the compery produced 3750 unts of Fiude: Required: 1. For direct moterielt - Compuse the prise and auamity voliances recommend that the compory sign tse cortroct? Required: 1. For criect materials. a. Compute the price and qusint yy yariences. recommend that the compsny aign the controct? 2. For direet lebor t. Compute the rate tnd etficieocy variances. b. In the past the 35 techniciant employed in the production of Fludex contisted of 20 sensor tectrucians andis asivitanth. During November the company expeeimented weh fower senion technicians and ntore assistants in order ta teduce labor costs Would youl iecominend that the new labor m. be conthued? 3. Compute the vahable overheod rase and effeciency valiances Compiete this question by enteisg your answers in the tabs below. For direct materipis, compote the price and quantzy variances. (indicate the effect of each variance by seitating ' F ver a. Compute the rote and efficiency variances. b. In the post, the 35 technicians employed in the production of Fludex consisted of 20 senior technicianis and 15 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. Complete this question by entering your answers in the tabs below. For direct labor, compute the rate and efficiency variances. (indicate the effect of each varlance by selecting "F" for favorabie. 'U' for unfavorable, and "None" for no effect (f.e. zero yarlance), Input all ampurte as positive values.) 2. For direct labor: - Compute the rate and efficiency variances. b. In the past, the 35 technicians employed in the production of Fludex consisted of 20 senior technicians and 15 assistonts. During November, the company experimented with fewer senior technicians and more assistonts in order to reduce labor costs Would you recommend that the new labor mix be continued? 3. Compute the varioble overhead rate and efficiency varionces. Complete this question by entering your answers in the tabs below. Compute the variable overhead rate and efficiency variances. (thaicate the effect of aach variance by selecting 2= for favorable, "U "for unfavorable, and 'None' for na effect (i, 6 , zero varianceli, thout all amounts as psitive vaices.)
