4. Problem 9-18 Comprehensive Variance Analysis (L09-4, L09-5, LO9-6) Miter 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 5.225.000 5235.00 Book 44,20 Files 65.52 Sales (3,- pools) Variable expenses Variable cost of goods sold Variable selling expenses Total variable expenses Contribution sargin Fixed expenses Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (ons) ws 21. 27.25 207,25 $2,000 62.000 7. 149, 109,000 $ 10,405 1.95) rence Contains direct materials, direct labor and variable manufacturing overnead, Janet Dunn, who has just been apported 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 Standard Price Standard Hours arate Cost Direct saterials 3.7 pounds 12.10 per bound $8.50 Direct labor 9.6 hours 7. De hour Variable canufacturing overhead 2.5 hours Se per hour 1.65 Total standare cont per unit 3 14.4 "Based on machine-hours During June the plant produced 3,000 pools and incurred the following costs 6. Purchased 16.100 pounds of materials at a cost of $2.75 per pound b. Used 10.900 pounds of materials in production (Finished goods and work in process inventones are insignificant and can be Ignored.) Worked 2400 direct labor-nours at a cost of $7.50 per hour. d. Incurred variable manufacturing overhead cost totaling $6,660 for the month. A total of 1800 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 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 overas favorable or unfavorable variance for the month Complete this question by entering your answers in the tabs below. Based on machine-hours During June the plant produced 3.000 pools and incurred the following costs: a. Purchased 16,100 pounds of materials at a cost of $2.75 per pound b. Used 10,900 pounds of materials in production. (Finished goods and work in process inventones are insignificant and can Ignored.) c. Worked 2.400 direct labor-hours at a cost of $7.50 per hour d. Incurred variable manufacturing overhead cost totaling $6,660 for the month. A total of 1800 machine-hours was recorded It is the company's policy to close all vartonces 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 vartances. 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 + nces 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. ic. 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 (Lerare variance). Input all amounts as positive values.) Show less Material price variance Material quantity variance TbLaborrate variance Laboracency variance to Variable overhead rate variance Variable overhead officiency variance Required 2 > 4. 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 lles in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool 1 point Direct materials Direct labor Variable manufacturing overhead Total standard cont per unit Standard Quantity or Hours pounds 6 hours 2.5 hours Standard Price or Rate 5 per pound 5. Ne per hour $ 3.5 per hour Standard Cost 5.51 4. 1,65 $14,4 Book B Print Beerences Based on machine hours During June the plant produced 3,000 pools and incurred the following costs a Purchased 16,100 pounds of materials at a cost of $2,75 per pound b Used 10,900 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be Ignored.) Worked 2.400 direct labor-hours at a cost or $7.50 per hour. Incurred variable manufacturing overned cost totaling $6,660 for the month A total of 1800 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 Varlatte 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, Complete this question by entering your answers in the tabs below. Required Required 2 Summarie 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 Galacting for favorable. "U" for unfavorable and for a wote o variance). To put the amount as positive value) 4. 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 lles in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool 1 point Direct materials Direct labor Variable manufacturing overhead Total standard cont per unit Standard Quantity or Hours pounds 6 hours 2.5 hours Standard Price or Rate 5 per pound 5. Ne per hour $ 3.5 per hour Standard Cost 5.51 4. 1,65 $14,4 Book B Print Beerences Based on machine hours During June the plant produced 3,000 pools and incurred the following costs a Purchased 16,100 pounds of materials at a cost of $2,75 per pound b Used 10,900 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be Ignored.) Worked 2.400 direct labor-hours at a cost or $7.50 per hour. Incurred variable manufacturing overned cost totaling $6,660 for the month A total of 1800 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 Varlatte 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, Complete this question by entering your answers in the tabs below. Required Required 2 Summarie 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 Galacting for favorable. "U" for unfavorable and for a wote o variance). To put the amount as positive value)