please help with the ones i got wrong, thank you!
Becton Labs, Inc, 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 Fludex, as follows: Standard quantity Standard Price Standard or Hous or Rate Direct materials 2.40 ounces $18.00 per ounce $ 43.20 Direct labor 0.70 hours $14.00 per hour 9.30 Variable manufacturing overhead 0.70 hours $ 3.00 per hour 2.10 Total standard coat per unit $ 55.10 During November, the following activity was recorded related to the production of Fludex: Inventory 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 c. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked on average of 160 hours at an average pay rate of $12.00 per hour. d. Variable manufacturing overhead is assigned to Fludex 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? 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 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? production of Fludex consisted of 5 senior technicians and 15 assistants. Du November the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. WOL recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Reg 2B Req3 For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance 6,400 42,280 + U labor mix be continued? nts in order to reduce labor costs. Would you 3. Compute the variable overhead rate and efficiency variances Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1A Req 10 Reg 2 Reg 28 Req3 Compute the variable overhead rate and efficiency variances. Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect (e., zero variance). Input all amounts as positive values.) Variable overhead rato variance Variable overhead efficiency variance 6,000 F 720U
