a Miller Toy Company manufactures a plastic swimming pool at Its Westwood Plant. The plant has been experlencing problems as shown by its June contribution format Income statement below: Flexible Actual Budget $250,000 $250.000 d Sales (3,000 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 Not operating income (loss) 53,430 26.000 79,430 170,570 67,000 26,000 93,000 157,000 67,000 67,000 92.000 92,000 159,000 159,000 $ 11,570 $ (2,000) . ces *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 Standard Price Standard Hours Or Rate Direct materials 4.2 pounds $ 2.80 per pound $11.76 Direct labor 0.5 hours $ 8.30 per hour Variable manufacturing overhead 0.5 hours $ 3.80 per hour Total standard cost per unit $17.81 Cost 4.15 1.90 *Based on machine-hours During June, the plant produced 3,000 pools and incurred the following costs: a. Purchased 17,600 pounds of materials at a cost of $3.25 per pound. b. Used 12,400 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be Ignored.) c. Worked 2,100 direct labor-hours at a cost of $8.00 per hour. d. Incurred variable manufacturing overhead cost totaling $7,560 for the month. A total of 1.800 machine-hours was recorded It is the company's policy to close all variances to cost of goods sold on a monthly basis Check my work 1 10 points Spoed During June, the plant produced 3,000 pools and incurred the following costs: a. Purchased 17,600 pounds of materials at a cost of $3.25 per pound. b. Used 12,400 pounds of materials in production (Finished goods and work in process inventories are insignificant and con be Ignored.) c Worked 2100 direct labor-hours at a cost of $8.00 per hour. d. Incurred variable manufacturing overhead cost totaling $7,560 for the month. A total of 1,800 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 (above by showing the net overall favorable or unfavorable variance for the month. Book Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 10. 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 vartances 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 (ezero variance). Input all amounts os positive values.) Show less ta: Meral price variance Material quantity variance 10 laborate variance Labor efficiency variance ic. Variable overhead rate variance Variable overhead officiency variance Print 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 (Wabove by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. References 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 " for favorable, "U" for unfavorable, and "None" for no effect (Le zero variance) Input all amounts as positive values.) Not variance