Problem 10-14 Basic Variance Analysis [LO10-1, L010-2, LO10-3] Becton Labs, Inc., 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 Standard Quantity or Hours 2.00 ounces Standard Price Standard or Rate Cost Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit $21.00 per ounce 42.00 $12.00 per hour $ 2.00 per hour 0.90 hours 0.90 hours 10.80 1.80 $ 54.6 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 10,000 ounces at a cost of $197,000 b. There was no beginning inventory of materials, however, at the end of the month, 2,550 ounces of material remained in ending C. The company employs 24 lab technicians to work on the production of Fludex. During November, they each worked an average of d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs e. During November, the company produced 3,700 units of Fludex. inventory 170 hours at an average pay rate of $11.50 per hour during November totaled $4,800