Problem 10-14 Basic Variance Analysis [LO10-1, LO10-2, LO10-3 Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called F laborate distilling process. The company has developed st ludex, is prepared using an andard costs for one unit of Fludex, as follows: Standard Price Standard Quantity or Rate Cost Direct material:s Direct labor Variable manufacturing $19.00 ounce 2.50 ounces 0.70 hours 0.70 hours $ 47.50 s15.00 per hour 10.50 2.80 $60.80 overhead s 4.00 per hour Total standard cost per unit During November, the following activity was recorded related to the production of Fludex a. Materials purchased, 12,500 ounces at a cost of $223,125 b. There was no beginning inventory of materials, however, at the end of the month, 3.250 ounces of material remained in ending c. The company employs 21 lab technicians to work on the production of Fludex During November, they each worked an average of 150 hours at an average pay rate of $12.50 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing ovehead costs during November totaled $5,100 e During November, the company produced 3,500 units of Fludex Required 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-ten recommend that the company sign the contract? se contract . Wou e the rate and efficiency variances