DOWE Chemical Company produces various chemical compounds for industrial use. DOWE's using an elaborate secret distling process. The table below shows the standard costs for one unit of Flubber best selling product, Flubber, is prepared Standard Price S Cost $21.00 per ounce $50.40 $15.00 per hour 12.00 or Rate Direct materials Direct labor 2.40 ounces 0.80 hours 0.80 hours 280 $ 3.50 per hour Variable manufacturing overhead $85 20 During October, the following activity was recorded relative to production of Flubber: a. Materials purchased, 13,500 ounces at a cost of $266.625 b. There was no beginning inventory of materials: however, at the end of the month. 4.200 ounces of material remained in ending inventory. an average rate of $14.50 per hour d. Variable manufacturing overhead is assigned to Flubber on the basis of direct labor-hours. Variable manufachuring overhead costs during October totaled $6.800. e. During October, 3,800 good units of Flubber were produced Required 1. For direct materials: a. Compute the price and quanity variances. (lnput all amounts as positive values Indicate the efflect of each variance by selecting F"for favorable, "U" for unfavorable, and "None" for no effect i.e, zero variance)) Materials price variance Materiais quantity variance b. The materials were purchased from a new supplier who is anuious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? Yes 2. For direct labor a Computle the rate and efficiency 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 (Le, zero variance)) ficiency variance b. In the past, the 24 sechnicians employed in the production of Flubber consisted of 4 senior technicians and 20 assistants. During Ocsober