DOWE Chemical Company produces various chemical compounds for industrial use. DOWE's best selling product, Flubber, is prepared using an elaborate secret distilling process. The table below shows the standard costs for one unit of Flubber Standard Price or Rate $26.00 per ounce Standard Cost $59.80 Standard Quantity Direct materials 2.30 ounces 340 per hour Variable manufacturing overhead 70 O s0 boure $68.50 During October, the following activity was recorded relative to production of Flubber: S305.625 b. There was no beginning inventory of materials; however, at the end c. The company employs 21 lab technicians to work on the production d. Vanable manufacturing overhead is assigned to Flubber on the basis of direct labor-hours. Variable manufacturing overhead costs during October totaled $4.200. During Octobe fthe month, 2,800 ounces of material remained in ending inventory. Flubber. During October, they worked an average of 150 hours at an average rate of $12.00 per hour. good un were produced Required: 1. For direct materials: a. Compute the price and quantity variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Materials price variance Materials quantity variance b. The materials were purchased from a new supplier who anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? No. 2. For direct labor Compute the rate and efficiency variances. (Input all amounts as positive values. Indicate the effect variance).) f each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero Labor rate variance Labor efficiency variance In the past, the 21 technicians employed in the production of Flubber consisted of 4 senior technicians and 17 assistants. During October, the company experimented with fewer senior technicians and more assistants order to save costs. Would you recommend that the new labor mix be continued? Yes No Compute the variable overhead rate and efficiency variances. (Input all amounts as positive values. Indicate the effect of each variance effect (i.e, zero variance).) y selecting "F" for favorable, "U" for unfavorable, and "None" for no Variable overhead rate variance e overad efficiency