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Please answer all parts of question, thank you Becton Labs, Incorporated produces various chemical compounds for Industrial use. One compound, called Rodex is prepared using
Please answer all parts of question, thank you
Becton Labs, Incorporated produces various chemical compounds for Industrial use. One compound, called Rodex is prepared using an elaborate disting process. The company lsas developed standard costs for one unit of ludex, as follows Direct material Direct labor Variable manufacturing over Total standard cost per Standard Quantity on Hous 2.60 C 0.0 hours 9.60 hours Standard Rate $20.00 pounce 16.00 per hour $4.50 per hour Standard ta $12.00 9.60 2.70 $164. During November, the following activity was recorded related to the production of flodex erences 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, 1,300 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 150 hours at an average pay rate of $14.00 per hout d. Variable manufacturing overhead is assigned to Fladex on the basis of direct labor hours. Variable manufacturing overhead costs during November totaled $6,500 e. During November, the company produced 3.600 units of Fludex Required: 1. For direct materials: Compute the price and quantity vartances 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? ne materias were purchased from a new supper who is anxious to enter into ang term purchase contact WOLIO 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 to Red 2A Reg 28 Reg For direct materials, compute the price and quantity variances. (Indicate the effect of each varone by selecting for favorable, "U" for unfavorable, and one for no effect zero wire) pot lamdunts as positive values Matanals price variance Materials quantity variance Reg 10 > Dine materials were purchased from a new suppuer who is anxious to enter into a song term patchase 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 varlances Complete this question by entering your answers in the tabs below. Regla Reg 11 Reg 2 26 Req3 For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect (ellero variance) Toput all amounts as positive values Laborrate variance Labor efficiency variance Step by Step Solution
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