Bernino Pools manufactures a plastic swimming pool at its Westdale Plant. The standard cost for one pool is as follows: Standard Quantity or Hours 1.40 kilograms 0.90 hours. Direct materials Standard Price or Rate $4.00 per kilogram Standard Cost $ 5.60 6.30 Variable manufacturing overhead 0.30 machine-hours $2.00 per machine-hour Total standard cost 0.60 $12.50 Direct labour $7.00 per hour The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 15,200 pools; the normal volume is 15,350 pools per month. Fixed costs are allocated using machine-hours. Sales (15,200 pools) Less: Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Less: Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net income Flexible Budgeted $ 456,000 Actual 205,690 $ 456,000 190,000 20,300 20,300 210,300 225,990 245,700 230,010 132,000 132,000 85,120 85,120 217,120 217,120 $ 28,580 $ 12,890 *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. 31,100 kilograms of materials were purchased at a cost of $3.90 per kilogram. h24 600 Vilograme of matoriale were used in production (Finiched nonde and work in nrocace inventories are incinnificant and can Net income $ 28,580 $ 12,890 *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. 31,100 kilograms of materials were purchased at a cost of $3.90 per kilogram. b. 24,600 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored.) c. 11,600 direct labour-hours were worked at a cost of $8 per hour. d. Variable manufacturing overhead cost totalling $17,600 for the month was incurred. A total of 4,400 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. 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).) 2:20 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