Roxy Labs Inc. produces varlous chemical compounds for Industrial use. One compound, called Clix, Is prepared by means of an elaborate distllling process. The company has developed standard costs for one unit of Clix, as follows:

$\backslash$table$[[$Direct materials,$2\mathrm{.}60$ mL at$,$$$18,$per m$11111$itre,$],[$Direct labour,$1\mathrm{.}20,$hours at$,$$$17\mathrm{.}60,$per hour$],[$Varlable overhead,$1\mathrm{.}20,$hours at$,$$$9\mathrm{.}60,$per hour$]]$

During November, the following activity was recorded by the company relative to production of Cllix:

a$.$ Materials were purchased, $11,600$ millilitres at a cost of $$234,900.$

b$.$ There was no beginning Inventory of materlals on hand to start the month; at the end of the month, $2400$ milllilitres of materlal remained in the warehouse unused.

c$.$ The company employs $35$ lab techniclans to work on the production of Cllx$.$ During November, each worked an average of $160$ hours at an average rate of $$13$ per hour.

d$.$ Varlable manufacturing overhead is assigned to Clix on the basis of direct labourhours. Varrable manufacturing overhead costs during November totalled $$18,200.$

e$.$ Fixed overhead is also allocated on the basis of direct labour$-$hours. The company had budgeted $$14\mathrm{.}436$ for the month but underapplied It by $$693.$

t$.$ During November, $3,760$ good units of Clix were produced. The normal volume for the month is $4,010$ good units.

The company's management is anxious to determine the efficiency of the activtles surrounding the production of Clix. The company's policy is to Investlgate any varlance more than $2\%$ different from the relevant standard.

b$.$ In the past, the $35$ techniclans employed In the production of Clix consisted of $20$ senior techniclans and $15$ assistants. During November, the company experimented wth only $15$ senlor techniclans and $20$ assistants in order to save costs. Would you recommend that the new labour mix be continued?

$$ Yes

$$ No

$3-$a$.$ Compute the varlable overhead spending and efficiency varlances. $($Indicate the effect of each varlance by selecting $"$F$"$ for favourable. $"$U$"$ for unfavourable, and "None" for no effect $($Le$.,$ zero varlance$).)$

$\backslash$table$[[,],[$Variable overhead spending variance,$],[$Variable overhead efficiency variance,$]]$

$3-$b$.$ This part of the question is not part of your Connect assignment.

$4.$ Compute the fixed overhead cost varlances for November. $($Indicate the effect of each varlance by selecting $"F"$ for favourable. $"$U$"$ for unfavourable, and "None" for no effect $($L$.$e$.,$ zero varlance$).)$

$\backslash$table$[[$Fixed overhead budget variance,$],[$Fixed overhead volume variance,$]]$