Bemino Pools manufactures a plastic swimming pool at its Westdale Plant. The standard cost for one pool is as follows: Standard Quantity Standard or Hours Standard Price or Rate Cost Direct materials 1.60 kilograms $4.00 per kilogram 5.6.40 Direct labour 0.90 hours $6.00 per hour 5.40 Variable manufacturing overhead 8.30 machine-hours $3.00 per machine-hour Total standard cost $12.70 The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 15,000 pools, the normal volume is 15,150 pools per month. Fixed costs are allocated using machine-hours. Flexible Budgeted Actual Sales (15,000 pools) $450,000 $450,000 Less: Variable expenses: Variable cost of goods sold 190,500 199,630 Variable selling expenses 20,000 20,000 Total variable expenses 210,500 219,630 Contribution margin 239,580 230,370 Less: Fixed expenses: Manufacturing overhead 130,000 130,000 Selling and administrative 84,000 84,000 Total fixed expenses 214,000 214,000 Net income $ 25,500 $ 16,370 "Contains direct materials, direct labour, and variable manufacturing overhead. Janet Dunn, the general manager of the Westdale Plant, wants to get things under control. She needs information about the operations in June since the income statement signalled that the problem could be due to the variable cost of goods sold Dunn learns the following about operations and costs in June a. 29,900 kilograms of materials were purchased at a cost of $3.70 per kilogram. b. 24,500 kilograms of materials were used in production (Finished goods and work-in-process inventories are invisgrificant and can be ignored.) c. 11,900 direct labour-hours were worked at a cost of $8 per hour. d. Variable manufacturing overhead cost totalling $15,400 for the month was incurred. A total of 4,400 machine-hours was recorded 27 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. Direct materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Material price variance Material quantity variance 1 b. Direct labour rate and efficiency variances indicate the effect of each wariance selecting for buto unfavourable, and "None" for no effect rero variance Labour rate wanance Labour efficiency variance 00:34:07 c. Variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance Bemino Pools manufactures a plastic swimming pool at its Westdale Plant. The standard cost for one pool is as follows: Standard Quantity Standard or Hours Standard Price or Rate Cost Direct materials 1.60 kilograms $4.00 per kilogram 5.6.40 Direct labour 0.90 hours $6.00 per hour 5.40 Variable manufacturing overhead 8.30 machine-hours $3.00 per machine-hour Total standard cost $12.70 The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 15,000 pools, the normal volume is 15,150 pools per month. Fixed costs are allocated using machine-hours. Flexible Budgeted Actual Sales (15,000 pools) $450,000 $450,000 Less: Variable expenses: Variable cost of goods sold 190,500 199,630 Variable selling expenses 20,000 20,000 Total variable expenses 210,500 219,630 Contribution margin 239,580 230,370 Less: Fixed expenses: Manufacturing overhead 130,000 130,000 Selling and administrative 84,000 84,000 Total fixed expenses 214,000 214,000 Net income $ 25,500 $ 16,370 "Contains direct materials, direct labour, and variable manufacturing overhead. Janet Dunn, the general manager of the Westdale Plant, wants to get things under control. She needs information about the operations in June since the income statement signalled that the problem could be due to the variable cost of goods sold Dunn learns the following about operations and costs in June a. 29,900 kilograms of materials were purchased at a cost of $3.70 per kilogram. b. 24,500 kilograms of materials were used in production (Finished goods and work-in-process inventories are invisgrificant and can be ignored.) c. 11,900 direct labour-hours were worked at a cost of $8 per hour. d. Variable manufacturing overhead cost totalling $15,400 for the month was incurred. A total of 4,400 machine-hours was recorded 27 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. Direct materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Material price variance Material quantity variance 1 b. Direct labour rate and efficiency variances indicate the effect of each wariance selecting for buto unfavourable, and "None" for no effect rero variance Labour rate wanance Labour efficiency variance 00:34:07 c. Variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Variable overhead spending variance Variable overhead efficiency variance