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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. "Contains direct materials, direct labor, and vatiable manufocturing overhead. Janct Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to "get things unded control." Upon teviewing the plants income statement, Ms. Dunn has concluded that the major problem lles in the vatiable cost of goods sold. She has been provided with the following standard cost per swimming poot Jariet Dunn, who has just been appointed general manager of the Westwood Piant, 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 varlable cost of goods sold. She has been provided with the following standard cost per swimming pool: "Based on machine hours. During June, the plant produced 7,000 pools and lncurred the following costs: 3. Purchased 29.500 pounds of materials at a cost of $2.55 per pound b. Used 24.300 pounds of materiats 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 $730 per hout. d incurted variable manufacturing overhead cost totaling $8,400 for the month. A total of 2.400 machine-hours was recorded It is the company's policy to close all vatiances to cost of goods sold on a monthly basis. Required: 1. Compute the following variances for June: a. Materials pice and quantity vatiances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the variances that vou computed in requirement 1 by showing the net overall favorable or unfavorable vatiance for the During June, the plant produced 7,000 pools and incurred the following costs: a. Purchased 29,500 pounds of materials at a cost of $2.55 per pound. b. Used 24,300 pounds of materials in production. (Finished goods and work in process inventorles are insignificant and can be ignored) c. Worked 3.400 direct labor-hours at a cost of $7.30 per hour. d. Incurred varlable manufacturing overhead cost totaling $8,400 for the month. A total of 2.400 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. Complete this question by entering your answers in the tabs below. 1a. Compute the following variances for June, materials price and quantity variances. 1b. Compute the following variances for June, labor rate and efliciency variances 1c. Compute the following variances for June, variable overhead rate and efficiency varlances. (Do not round your intermediate calculations, Indicate the effect of each variance by selecting "F" for favorable, "U*" for Complete this question by entering your answers in the tabs below. 1a. Compute the following variances for June, materials price and quantity variances. 16. Compute the following varlances for June, Labor rate and efficlency variances. ic. Compute the following variances for June, variable overhead rate and efficiency varlances (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.e., Rero variance). Input all amounts as positive values.) 2. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or unfavorable varlance for the month. Complete this question by entering your answers in the tabs below. Summarize the variances that you computed in requirement 1 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 (i.e, zero variance). Input all amounts as positive values.)
