Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called Fludex, is prepa

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Becton Labs, Incorporated, 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 or Standard Price or Rate $ 29.00 per ounce $ 12.00 per hour $ 3.50 per hour Hours 2.60 ounces 0.60 hours 0.60 hours Standard Cont $ 75.40 Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit During November, the following activity was recorded related to the production of Fludex: 7.20 2.10 $ 84.70 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 average 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 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.

3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Req 1A Req 28 For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Req 18 Materials price variance Materials quantity variance Req 2A <Roq 1A Req 3 Req 1B >

ces 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Req 1A Req 1B OYes ONO Req 2A Req 2B For direct materials, the materials were purchased from a new supplier who is anxious to enter into a long-te contract. Would you recommend that the company sign the contract? Req 3 < Req 1A Req 2A >

Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Labor rate variance Labor efficiency variance Req 2B For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by se "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive value Req 3 < Req 1B Req 2B >

3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 28 Req 3 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? OYes ONO Req 2A < Req 2A Req 3 >

3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 28 Req 3 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 (1.e., zero variance). Input all amounts as positive values.) Req 2A Variable overhead rate variance Variable overhead efficiency variance < Req 28 Raq 3 >