le Becton Labs, Incorporated, produces various chemical compounds for industrial use one compound, clied Pride is prepared using an elaborate disting process. The company has developed standard costs for one unit of Fludex, as follows: Sad Quality and writer Director Rate Cost 2.60 Direct labor 20.00 per $2.00 0.60 Variable manufacturing over 16.00 per 7.50 0.69 hour 20 Total standard coat per unit During November the following activity was recorded related to the production of Fluder a. Materials purchased, 13.000 ounces at a cost of $244.400 b. There was no beginning inventory of materials: however, at the end of the month, 3.300 ounces of material remained in ending Inventory c. The company employs 20 tab technicians to work on the production of Pudex. During November, they each worked an average of 150 hours at an average pay rate of $14.00 per hour d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Variable manufacturing overhend costs during November totaled $6.500 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? 2. For direct labor a. Compute the rate and efficiency variances, b. In the past, the 20 technicians emoloved in the production of Fiudex consisted of 4 senior technicians and 16 assistants. Durina ] 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 Fludex consisted of 4 senior technicians and 16 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 Reg 18 Req ZA Reg 28 Reg 3 For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.)