3. Compute the variable overhead rate and efficiency variances.

Becton Labs, Incorporated, produces varlous 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. Materlals purchased, 12,000 ounces at a cost of $282,000. b. There was no beginning Inventory of materlals; however, at the end of the month, 2,750 ounces of materlal remained in ending Inventory. c. The company employs 25 lab techniclans to work on the production of Fludex. During November, they each worked an average of 110 hours at an average pay rate of $11.50 per hour. d. Varlable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Varlable manufacturing overhead costs during November totaled $2,400. e. During November, the company produced 4,100 units of Fludex