A. Judge Yankee Distilling Company produces a number of alcohol-based solvents for industrial contamination prevention use. One of the solvents, Ripit, is produced through an extensive distilling process. Yankee Distilling has developed the following standards for Ripit Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.00 ounces 0.99 hours 0.99 hours Standard Price or Rate $21.00 per ounce $12.00 per hour $ 2.00 per hour Standard Cost $42.00 10.80 1.89 $ 54.60 For the month of August, Yankee Distilling recorded the following activity related to the production of Ripit 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 Ripit. During August, 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 Ripit on the basis of direct labor-hours, Variable manufacturing overhead costs during August totaled $4800 e. During August, the company produced 3.700 units of Ripit Required: 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 24 technicians employed in the production of Ripit consisted of 6 senior technicians and 18 assistants. During August, 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. Reg 1A Reg 18 Reg 2 Reg 28 Reg 3 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 (I., Tero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance is question by entering your answers in the tabs below. Req 18 Req 1A Reg 18 Req 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 pur contract. Would you recommend that the company sign the contract? Yes 10 No ( Req 1A 1 Req 2A > Reg 1A Reg 1B Req2A Reg 28 Reg 3 For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) Labor rate variance Labor efficiency variance In the past, the 24 technicians employed in the production of Ripit consisted of 6 senior technicians and 18 assistants. During August, 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? Yes No 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 (.e., zero variance). Input all amounts as positive values.) Variable overhead rate variance Variable overhead efficiency variance