eden Labs, Inc., produces various chemical compounds for industrial use. One Compound, called Fludex. is prepared using an elaborate disilling process. The company has dereloped standard costs for one unit of Flades. us follows:$37240$During Nevember. the followig acus ity was recorded related to the production ofThutexa. Materials purchased. $12\mathrm{.}000$ ounces at a cost of $$225\mathrm{.}000.$b$.$ There was no beginning inventory of materials: however. at the end of the month. $2\mathrm{.}500$ ounces of material remained in ending inventory.c$.$ The company employs $35$ lab technicians to work on the production of Fludes.DuringNovember, they worked an average of $160$ hours at an average rate of S$12$ per hourd. Varable manulacturing overhead is assigned to Fludes on the basis of direct labor$-$hours.Variable manufacturing overhead costs during November totaled $$18\mathrm{.}200.$c$.$ During November, $3\mathrm{.}750$ good units of Fluder were produced.Required:$1.$ For direet materials:a$.$ Compute the price and quantity sarances.b$.$ The materials were purchased from a new supplier who is anxious to enter into a long$-$term purchase contget. Would you recommend that the company sion the contract? Isplam$\mathrm{.}2.$ For direct labor:a$.$ 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 $15$ assistants. During November. the company experimented with fewer senior technicians and more assistants in order to save costs. Would you recommend that the new labor mis be continued? Explain$\mathrm{.}3.$ Compute the variable overhead rate and efficieney variances: