Saved 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: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.00 ounces 0.90 hours 0.90 hours Standard Price or Rate $21.00 per ounce $12.00 per hour $ 2.00 per hour Standard Cost $ 42.00 10.30 1.80 $ 54.60 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 10,000 ounces at a cost of $197.000. b. There was no beginning inventory of materials; however, at the end of the month, 2.550 ounces of material remained in ending inventory c. The company employs 24 lab technicians to work on the production of Fludex. During November, they each worked an average of 170 hours at an average pay rate of $11.50 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 3,700 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 and that the marinn the mantart? 4 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 yo recommend that the company sign the contract? 2. For direct labor a. Compute the rate and efficiency variances. b. In the past, the 24 technicians employed in the production of Fludex consisted of 6 senior technicians and 18 assistants November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Book int ences Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B Req3 For direct materials, compute the price and quantity 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.) Materials price variance Materials quantity variance Reg 1A Req 1B > ook 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 24 technicians employed in the production of Fludex consisted of 6 senior technicians and 18 assist November, the company experimented with fewer senior technicians and more assistants in order to reduce labor cos recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. nt nces Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Req 2B Reg 3 For direct materials, 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? Yes No Nort eBook a. Compute the rate and efficiency variances. b. In the past, the 24 technicians employed in the production of Fludex consisted of 6 senior technician November, the company experimented with fewer senior technicians and more assistants in order to re recommend that the new labor mix be continued? Print References 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2A Req 2B Reg 3 For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by selecting "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance Print LUIS CU TOTO ssistants in order to reduce recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. References Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Req 28 Reg 3 Compute the variable overhead rate and efficiency variances. (Indicate the effect of each variance by selecting "F" favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values, Variable overhead rate variance Variable overhead efficiency variance
