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 22 technicians employed in the production of Fludex consisted of 5 senior technicians and 17 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. For direct materials, the materials were purchased from a new supplier who is ancious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 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 22 technicians employed in the production of Fludex consisted of 5 senior technicians and 7 assistants. Duri November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would 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. Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distiling process. The company has developed standard costs for one unit of Fludex, as follows: During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 14,000 ounces at a cost of $388,500 b. There was no beginning inventory of materials, however, at the end of the month, 2,950 ounces of material remained in ending inventory. c. The company employs 22 lab technicians to work on the production of Fludex. During November, they each worked an overage of 150 hours at an average pay rate of $11.00 per hour d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $5,500 e. During November, the company produced 4,200 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 ancious to enter into a long-term purchase contract Would you recommend that the company sign the controct? 2. For direct labor: a. Compute the rate and eficiency variances b. In the past, the 22 technicians employed in the production of Fludex consisted of 5 senior technicians and 17 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. For direct materials, compute the price and quantity variances, (Indicate the effect of each variance by selecting "F" for fovorable, "Y' for unfavorable, and "None" for no effect (i.e, zero variance). Input all amounts as positive values.) 2 For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 22 technicians employed in the production of Fludex consisted of 5 senior technicians and 17 assistants. Durin November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would 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. In the past, the 22 technicians employed in the production of Fludex consisted of 5 senior technicians and 17 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? 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 22 technicians employed in the production of Fludex consisted of 5 senior technicians and 17 assistants. During November, the company expenmented with fewer senior technicians and more assistants in order to reduce labor costs. Would yoi recommend that the new lobor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. For direct Labor, compute the rate and efficiency vationces. (Indicato the effect of each variance by selecting "F" for favorable, "Un" for unfavorable, and "None" for no effect (l.e., zero varfance). Input all amounts as positive values.)
