Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

Flexible Budget Actual

Sales $(5,000$ pools$)$ $ $272,000$ $ $272,000$

Variable expenses:

Variable cost of goods sold$*84,25099,765$

Variable selling expenses $23,00023,000$

Total variable expenses $107,250122,765$

Contribution margin $164,750149,235$

Fixed expenses:

Manufacturing overhead $64,00064,000$

Selling and administrative $89,00089,000$

Total fixed expenses $153,000153,000$

Net operating income $($loss$)$ $ $11,750$ $ $(3,765)$

$*$Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to $$get things under control.$$ Upon reviewing the plant$$s income statement, Ms$.$ Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

Standard Quantity or Hours Standard Price or Rate Standard Cost

Direct materials $3\mathrm{.}9$ pounds $ $2\mathrm{.}50$ per pound $ $9\mathrm{.}75$

Direct labor $0\mathrm{.}8$ hours $ $8\mathrm{.}00$ per hour $6\mathrm{.}40$

Variable manufacturing overhead $0\mathrm{.}2$ hours$*$ $ $3\mathrm{.}50$ per hour $0\mathrm{.}70$

Total standard cost per unit $ $16\mathrm{.}85$

$*$Based on machine$-$hours.

During June, the plant produced $5,000$ pools and incurred the following costs:

Purchased $24,500$ pounds of materials at a cost of $$2\mathrm{.}95$ per pound.

Used $19,300$ pounds of materials in production. $($Finished goods and work in process inventories are insignificant and can be ignored.$)$

Worked $4,600$ direct labor$-$hours at a cost of $$7\mathrm{.}70$ per hour.

Incurred variable manufacturing overhead cost totaling $$5,070$ for the month. A total of $1,300$ machine$-$hours was recorded.

It is the company$$s policy to close all variances to cost of goods sold on a monthly basis.

Required:

$1.$ Compute the following variances for June:

a$.$ Materials price and quantity variances.

b$.$ Labor rate and efficiency variances.

c$.$ Variable overhead rate and efficiency variances.

$2.$ Summarize the variances that you computed in requirement $1$ by showing the net overall favorable or unfavorable variance for the month.