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 2.10 ounces Standard Price or Rate $22.00 per ounce $15.00 per hour Standard Cost Direct materials $46.20 Direct labor 0.80 hours 12.00 $ 2.50 per hour 2.00 Variable manufacturing overhead Total standard cost per unit 0.80 hours $60.20 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 10,500 ounces at a cost of $216,825. b. There was no beginning inventory of materials; however, at the end of the month, 2,600 ounces of material remained in ending inventory. c. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 180 hours at an average pay rate of $14.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $7,000. e. During November, the company produced 3,700 units of Fludex.

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 2.10 ounces Standard Price or Rate $22.00 per ounce $15.00 per hour Standard Cost Direct materials $46.20 Direct labor 0.80 hours 12.00 $ 2.50 per hour 2.00 Variable manufacturing overhead Total standard cost per unit 0.80 hours $60.20 During November, the following activity was recorded related to the production of Fludex: a. Materials purchased, 10,500 ounces at a cost of $216,825. b. There was no beginning inventory of materials; however, at the end of the month, 2,600 ounces of material remained in ending inventory. c. The company employs 20 lab technicians to work on the production of Fludex. During November, they each worked an average of 180 hours at an average pay rate of $14.00 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $7,000. e. During November, the company produced 3,700 units of Fludex.

Name: Required:1. For direct materials:a. Compute the price and quantity va
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Description: 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-term purchase contract.Would you recommend that the company sign the contract?2. For

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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I would like to get answers for a), b) and c) the question is attached below...
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