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PROBLEM 10-14 Basic Varlance Analysis LO10-1, ( LO10-2, ( LO10-3 Becton Labs, Inc, produces various chemical compounds for industrial use. One compound, called Fludex, is prepared Page 469 using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Durng November, the folloming getisity was recorded related to the production of Fludex: 2. Materials purchased, 12,000 ounces at a cost of $225,000 5. There was no beginning inreatons of materials, hostever, at the end of the month, 2,500 ounces of material remained in ending inventory: c. The compary emplovs 35 lab technicians to moels on the protuction of Fluder During November, they each worked an average of 160 hours at an average pajsrate of 922 per hour d. Varrable nemufacturing overdead is assigred to Flader on the besis of digect dabor bouss. Variable manufecturing overhead costs during Norember totaled $18,200. e. Durng November, the compgny produced 3,750 , units of E Hudext