Bernino Pools manufactures a plastic swimming pool at its Westdale Plant. The standard cost for one pool is as follows: Standard Quantity or Hours 1.60 kilograms 0.90 hours Variable manufacturing overhead 0.50 machine-hours Direct materials Direct labour Total standard cost Standard Price or Re $4.00 per kilogram $6.00 per hour $3.00 per machine-h 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 Sales (15,000 pools) $450,000 Actual $450,000 Less: Variable expenses: Variable cost of goods sold* 199,500 204,706 Variable selling expenses 20,000 20,000 Total variable expenses 219,500 224,706 Contribution margin 230,500 225,294 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 $ 16,500 $ 11,294 "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. 31,300 kilograms of materials were purchased at a cost of $3.70 per kilogram. b. 24,300 kilograms of materials were used in production. (Finished goods and work- in procace inuentorine are ineinnificant and can ha innored! 56:36 D. 24,3UU Kilograms or materials were usea in production. (rinisned goods and work-in-process inventories are insignificant and can be ignored.) c. 11,800 direct labour-hours were worked at a cost of $8 per hour. d. Variable manufacturing overhead cost totalling $22,496 for the month was incurred. A total of 5,920 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. 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 b. Direct labour rate 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).) Labour rate variance b. Direct labour rate 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).) Labour rate variance Labour efficiency variance 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