During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 13,500 ounces at a cost of $266,625, b. There was no beginning inventory of materlals; however, at the end of the month, 4.200 ounces of material remained in ending inventory. c. The company employs 24 lab technicians to work on the production of Fludex. During November, they each worked an average of 140 hours at an average pay rate of $14.50 per hour. d. Varlable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,800. e. During November, the company produced 3,800 units of Fludex. Required: 1. For direct materias: 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 24 technicians employed in the production of Fludex consisted of 4 senior technicians and 20 assistants, During November, the company experimented with fewer senlor fechnicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the varhable overhead rate and efficiency vartances. Becton Labs, Inc., produces various chemical compounds for industrial use, One compound, called Fludex, is prepared using an elaborate distiling process. The company has developed standard costs for one unit of Fludex, as follows: During November, the following activity was recorded related to the production of Fludex: 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. c. The company employs 24 lab lechiniclans to work on the production of Fludex. Duting November, they each worked an average of 140 hours at an average pay rate of $14.50 per hout. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Variable manufacturing overhead costs duting November totaled $6,800. e. Duting November, the company produced 3,800 units of Fludex