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FIUMICUyu wa wanance and III, LU10-4, LO10-31 Becton Labs, Inc, produces various chemical compounds for industrial use. One compound, called Frudex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: standard Quantity Standard Price Standard DE NUE O Rate Coat Direct materiala 2.40 ounces $28.00 per ounce 143.20 Diret labor 9.70 hours $14.00 per hour Variable manufacturing overhead 0.70 hours $3.00 per hour -2.10 Total standard cost per unit 155.10 During November, the following activity was recorded related to the production of Fudex a. Materials purchased, 12,000 ounces at a cost of $198.000. b. There was no beginning inventory of materials; however at the end of the month, 3.200 ounces of material remained in ending Inventory c. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at an average pay rate of $12.00 per hour d. Variable manufacturing overhead is assigned to ludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,800. e. During November, the company produced 3,600 units of Fludex Required: 1. For direct materials 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? Prey 1 of 4 Next > Required: 1. For direct materials: 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 20 technicians employed in the production of Fiudex consisted of 5 senior technicians and 15 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances Complete this question by entering your answers in the tabs below. Reg 1A R18 Red 2A Reg 28 Red 3 For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect (le, zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance 18.000 424800 Reg 18> reuu aie ai eiciency variances. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg za Req 2B Req3 For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by sele "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values. Labor rate variance Labor efficiency variance Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req3 Compute the variable overhead rate and efficiency variances. (Indicate the effect of each varianc favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts a Variable overhead rate variance Variable overhead efficiency variance