Bernino Pools manufactures a plastic swimming pool at its Westdale Plant. The standard cost for one pool is as follows: Direct materials Direct labour Variable manufacturing overhead Total standard cost Standard Quantity or Hours 1.20 kilograms Standard Cost Standard Price or Rate $5.00 per kilogram. $ 6.00 $4.00 per hour 3.20 0.30 machine-hours $3.00 per machine-hour 0.80 hours 0.90 $10.10 The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 14,800 pools, the normal volume is 14,950 pools per month. Fixed costs are allocated using machine-hours. Sales (14,800 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 Flexible Budgeted $444,000 Actual $ 444,000 149,480 156,270 19,700 19,700 169,180 175,970 274,820 268,030 128,000 128,000 82,880 82,880 210,880 210,880 5 63,940 $ 57,150 Net income "Contains direct materials, direct labour, and variable manufacturing overhead. "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. 30,100 kilograms of materials were purchased at a cost of $3.70 per kilogram. b. 24,200 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored.) c. 11,800 direct labour-hours were worked at a cost of $5 per hour. d. Variable manufacturing overhead cost totalling $15,400 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).) 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