PROBLEM 10-14 Basic Varlance Analysis (G) LO10-1, () LO10-2, () LO10-3 Becton Labs, Ine, procuces varices chemical cochpounds for industrial we. One compoand, called Fludex, brepared esing an elaborate distilline process. The compamy has developed uandard costs for ane unit of Fludet, sx follow: During Noverber, the following activity was recorded related to the producticn of Fludex: a. Materiak purchased, 12,000 cances at a cont of $225,000. 5. There was no beginiing inventory of materiall; bewever. at the end of the month. 2500 cunces of material remained in endisg imentory. C. The compary employs 35 lab trchnicians to work on the prodection of Fluder. Durine November, they each worked an averape of 160 bours at an average pay mite of 522 per hoer. *. During Novenber, the everpacy predaced 3,750 anits of Fludex Required: 1. For direst materials 1. Compete the price and coustiey variascec. 1. For ilirect labar- 2. Comesile the rate and rofliciency variances