2 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. 5 points Flexible Actual Budget $ 272,000 $272,000 eBook Sales (5,000 pools) Variable expenses Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin Fixed expenses Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (los) 84,250 99,765 23,000 23.000 107,250 122,265 164,750 149,235 Print References 64,000 64,000 89,000 89,000 153,000 153,000 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 3.9 pounds 0.8 hours 0.2 hours Standard Price or Rate $ 2.50 per pound $ 8.00 per hour $ 3.50 per hour Standard Coat, $ 9.75 Direct materiala Direct labor Variable manufacturing overhead Total standard cost per unit 0.70 $16.85 2 Total standard cost per unit $ 16.85 5 points Book *Based on machine-hours. During June, the plant produced 5,000 pools and incurred the following costs: a. Purchased 24,500 pounds of materials at a cost of $2.95 per pound. b. Used 19,300 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be c. Worked 4,600 direct labor-hours at a cost of $770 per hour. d. 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 (1) above by showing the net overall favorable or unfavorable variance for the month. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 1a. Compute the following variances for June, materials price and quantity variances 1b. Compute the following variances for June, labor rate and efficiency variances. ng the net overo Tavorable able variance for the month. Complete this question by entering your answers in the tabs below. 5 points Required 1 Required 2 Print 1a. Compute the following variances for June, materials price and quantity variances 1b. Compute the following variances for June, labor rate and efficiency variances. 1c Compute the following variances for June, variable overhead rate and efficiency variances. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I., zero variance). Input all amounts as positive values.) References Show less 1a Material price variance Material quantity variance 1b Laborale variance Labor efficiency variance 10. Variable overhead rate variance Variable overhead officiency variance Ch. 10 HW Help Save & Exit Submit Check my work 2 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 () above by showing the net overall favorable or unfavorable variance for the month. Complete this questioll by entering your answers in the tabs below. 5 points eBook Print Required 1 Required 2 Pferences Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. (Indicate the effect of each variance by selecting " for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Net variance