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 Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Price Standard Standard Quantity or Rate Cost Direct materials Direct labor Variable manufacturing overhead 2.50 ounces 0.70 hours 0.70 hours $15.00 per hour S 4.00 per hour $19.00 per ounce$ 47.50 10.50 2.80 60.80 to 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 inventory. c. The company employs 21 lab technicians to work on the production of Fludex. During November, they d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable worked an average of 150 hours at an average rate of $12.50 per hour. manufacturing overhead costs during November totaled $5,100 e. During November, 3,500 good units of Fludex were produced Required 1. For direct materials: a. Compute the price and quantity variances. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance).) Materials price variance Materials quantity variance