For direct materials, 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? For direct labor, compute the rate and efficiency variances. $($Indicate the effect of each

variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$

zero variance$).$ Input all amounts as positive values.$)$Req $1A$

Req $2$B

Rech $3$

Compute the variable overhead rate and efficiency variances. $($Indicate the effect of each

variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$

zero variance$).$ Input all amounts as positive values.$)$