Problem 10-14 (Algo) Basic Variance Analysis (LO10-1, L010-2, L010-3] Becton Labs, Inc, produces various chemical compounds for industrial use one compound, called Fudex is prepared using an elaborate distilling process. The company has developed standard costs for one unt of Fiudex as follows: Standard Quantity Standard Price or Hours Direct materials 2030 Doncs $26.00 per ce $55.20 Direct Labor hours 335.phou Variable canufacturing overhead 2 hours $ 3.5 hour 2013 Total standard cott per unit During November, the following activity was recorded related to the production of Fludes a. Materials purchased, 12.500 ounces at a cost of $282,500 b. There was no beginning inventory of materiais, however, at the end of the month 3,000 ounces of material remained in ending c. The company employs 26 ob technicians to work on the production of Fudex. During November, they each worked an average of 150 hours at an average pay rate of $14.00 per hout a Varlable manufacturing overhead is assigned to Fudex on the basis of direct inbor-hours Variable manufacturing overhead costs e. During November, the company produced 4300 units of Fudex Required: 1 For direct materials a. Compute the price and quantity variances b. The materials were purchased from a new supplier who is nous to enter into a long term purchase contract Would you recommend that the company sign the contract 2. For direct labor Compute the rate and efficiency variances b. In the past the 25 technicians employed in the production of Pudes consisted of 4 senior technicians and 22 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. Rag Radio He ZA R 25 For direct materials compute the price and quantitances de chance by selecting F favorable for unbeden for etc touto positive values.) prices Prev