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: During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 12,000 ounces at a cost of $198,000. b. There was no beginning inventory of materials; however, at the end of the month, 3,200 ounces of material remained in ending inventory. c. The compary employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at an average pay rate of \$12.00 per hour: d. Variable manufacturing overhead is assigned to Fudex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $4,800. e. During November, the company produced 3.600 units of Fludex. Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called an elaborate distilling 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, 12,000 ounces at a cost of $198,000 b. There was no beginning inventory of materials, however, at the end of the month, 3,200 ounces of mater inventory. c. The company employs 20 lab technicians to work on the production of Fludex. During November, they ea 160 hours at an average pay rate of $12.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Vanable manuf during November totaled $4,800 e. During November the company produced 3.600 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 20 technicians employed in the production of Fludex consisted of 5 senior technicians and 15 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would yoi 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 favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) 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 lor recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 20 technicians employed in the production of Fludex consisted of 5 November, the company experimented with fewer senior technicians and more assist 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. 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 s favorable, " U " for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positiv 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 anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? Complete this question by entering your answers in the tabs below. For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by seler "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. In the past, the 20 technicians employed in the production of Fludex consisted of 5 senior technicians and 15 as During November, the company experimented with fewer senior technicians and more assistants in order to redu 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. 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.izero variance). Input all amounts as positive values.)