6 Milier 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: 12 Plexible Budget Retual 5310.000 $310.000 Sales (7.000 pools) Variable expenses Variable cost of goods solde Variable Bling expenses Total variable expenser Contribution margin Pixed expenses Manafacturing overhead Selling and administrative Total fixed expenses Het operating income (ons) 110,010 131, 605 25,000 25,000 135.10 156,683 374, 100 153315 ook Post 66,000 66.000 91.000 157.000 152.000 $ 19.190 $2,651 Peter "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 Diret materiais Direct labor Variable manufacturing overhead Total standard cont per unit 4.1 pounds 0.4 hour 0.4 hours Standard Price Standard or Rate Coat 5 2.70 per pound $11.07 0 0.20 per hour 3.20 63.70 per hour $15.03 "Based on machine-hours. During June the plant produced 7,000 pools and incurred the following costs: a. Purchased 33,700 pounds of materials at a cost of $3.15 per pound, b. Used 28,500 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 3,400 direct labor-hours at a cost of $7.90 per hour. d. Incurred varinble manufacturing overhead cost totaling $12710 for the month. A total of 3,100 machine hours was recorded. It is the company's policy to close alt 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. 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 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. 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 (.e., zero variance). Input all amounts as positive values.) Show less 1a. Material price variance Material quantity variance 1b. Labor rate variance Labor efficiency variance 10. Variable overhead rate variance Variable overhead officiency variance Required Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input the amount as positive value.) Net variance