Problem 11-14 Basic Variance Analysis (LO11-1, LO11-2. LO11-3] Becton Labs, Inc. produces various chemical compounds for industrial use. One compound, caled Fludex, is prepared using an elaborate disting process. The company has developed standard costs for one unt of Fludex as follows: Standard Prion Standard or Rate Standard Quantity 210 ONS 0.40 hours 0.40 hours Direct labor Variabia m $24.00 per Ounce $14.00 per hour $ 2.50 per hour $50.40 560 tacturing ovamond S500 During November, the following activity was recorded relative to production at Fludex: 2. Materials purchased, 11.500 ounces at a cost of $259, 325 b. There we beginning ventory of material however at the end of the mor0 2.700 Ourgos o mas mamanodonding invonary a. The company employs 22 lab technicians to work on the production of Fudex. During November, they worked an average of 100 hours at an average rate of 511.00 per hour c. Variable manufacturing overhead sasagned to Fluox on the basis of direct bor hours Variable manufacturing overhead coats during November totaled $2,300 e. During November, 4.100 qood units of Fudex were produced Required: 1. For direct materials a. Compute the price and quantity variances, input all amount as positive values Indianto the foot of each varianon by c ong 'F' for favorab " for unfavorable, and "None" for no effect (le, zero vanan Mats price variance Materials quatty variance The materials were purchased from a new supplier who is anxious to enter to a long-term purchase contract. Would you recommend that the company sign the contract? Yes O No 2. For direct labor Compute the rate and officiency variances. (input all amounts a pociva valus. Indicate the effoot of t he variance by colosting "F" Por favorable, "U" for unfavorable, and "Nontorno affetile, zaro variancel. Laborrate variance Labor efficiency variance b. In the past, the 23 technicians employed in the production of Flud consisted of 4 senior technicians and 19 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to save costs. Would you command that the now labor mby be continued Yes O Na 3. Compute the varabia overhead rate and officiency variances. (Input al amount ac positive value Indloate the affeot of each varianoe by casting for favorable, "U" for unfavorable, and "None" for no effect (l.zoro variance Variable overhead rate varianta Variable ovo mondoticoncy variance