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How do I get the materials quantity variance? Please solve it. Becton Labs Inc, produces various chemical compounds for industrial use. One compound, called Fludex,

How do I get the materials quantity variance?

Please solve it.

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Becton Labs Inc, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared by means of an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials 2.40 mL at $18 per millilitre Direct labour 1.20 hours at $26.00 per hour Variable overhead 1.20 hours at $ 6.00 per hour During November, the following activity was recorded by the company relative to production of Fludex: a. Materials were purchased, 12,400 millilitres at a cost of $279,000. There was no beginning inventory of materials on hand to start the month; at the end of the month, 2,600 millilitres of material remained in the warehouse unused. c. The company employs 35 lab technicians to work on the production of Fludex. During November, each worked an average of 158 hours at an average rate of $13 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labour-hours. Variable manufacturing overhead costs during November totalled $18,200. e. Fixed overhead is also allocated on the basis of direct labour-hours. The oompany had budgeted $16,758 for the month but undeiapplied it by $804. f. During November, 3,740 good units of Fludex were produced. The normal volume for the month is 3,990 good units. F' The oompany's management is anxious to determine the efciency of the activities surrounding the production of Fludex. The oompanys policy is to investigate any varianoe more than 2% ditrerent from the relevant standard. Required: 1. For materials used in the production of Fludex: a. Compute the price and quantity variances. (Indicate the effect of each variance by selecting \"F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variancel.) Materials prioe varianoe Materials quantity varianoe

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