mate Cost Becton Labs, Incorporated, produces various chemical compounds for Industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fiudex, as follows: Standard Quantity or standard Price or Standard Hour Direct materiale 2.10 ounces $ 22.00 per ounce $ 46.20 Direct Lahor 0.80 hours $ 15.00 per hour 12.00 Variable manufacturing overhead 0.80 bours $ 2.50 per hour Total standard cost per unit $ 60.20 During November, the following activity was recorded related to the production of Fludex 2.00 a. Materials purchased, 10,500 ounces at a cost of $216,825 b. There was no beginning inventory of materials; however, at the end of the month, 2.600 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 180 hours at an average pay rate of $14.00 per hout, d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor hours. Variable manufacturing overhead costs during November totaled $7,000. e. During November, the company produced 3,700 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 employed in the production of Fludex consisted of 8 senior technicians and 12 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recom nd that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances