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(Solved): Becton Labs, Incorporated, produces varlous chemical compounds for Industrlal use. One compound, ca ...

Becton Labs, Incorporated, produces varlous chemical compounds for Industrlal use. One compound, called Fludex, has the following standard cost per unit: During November, the following activity was recorded related to the production of Fludex: a. Materlals purchased, 14,000 ounces at a cost of


. b. There was no beginning inventory of materials; however, at the end of the month, 4,050 ounces of material remained in ending Inventory. c. The company employs 26 lab techniclans to work on the production of Fludex. During November, they each worked an average of 150 hours at an average pay rate of


per hour. d. Varlable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Varlable manufacturing overhead costs during November totaled


. e. During November, the company produced 3,900 units of Fludex. Required: For direct materlals: a. Compute the price and quantity varlances. b. The materlals were purchased from a new supplier who Is anxious to enter Into a long-term purchase contract. Would you recommend the company sign the contract? For direct labor: a. Compute the rate and efficlency varlances. b. In the past, the 26 technicians employed in the production of Fludex consisted of 6 senior techniclans and 20 assistants. During November, the company experimented with fewer senior techniclans and more assistants in order to reduce labor costs. Would you recommend the new labor mIx be continued? Compute the varlable overhead rate and efficlency varlances. Complete this question by entering your answers in the tabs below. Compute the variable overhead rate and efficiency variances. Note: Indicate the effect of each variance by selecting "


" for favorable, "


" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.

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