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can someone help me with this Problem 9-18 (Algo) Comprehensive Variance Analysis (L09-4, L09-5, LO9-6) Miller Toy Company manufactures a plastic swimming pool at Its
can someone help me with this
Problem 9-18 (Algo) Comprehensive Variance Analysis (L09-4, L09-5, LO9-6) Miller Toy Company manufactures a plastic swimming pool at Its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format Income statement below: Plexible Budget Actual Sales (5,000 pools) $ 260,000 $ 260,000 Variable expenses: Variable cont of goods sold 84,500 98,865 Variable selling expenses 17.000 17,000 Total variable expenses 101,500 115, 865 Contribution margin 156.500 144, 135 Fixed expenses: Manufacturing overhead 65,000 65,000 Selling and administrative 83,000 83,000 Total fixed expenses 148,000 140.000 Not operating income Loan) 5 10,500 $ (3,8653 *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 Hours Standard Price or Race Coat Dlreet materiale 3.3 pound $ 2.80 per pound $9.24 Direct labor 0.0 hours 7.40 per hour 5.92 Variable manufacturing overhead 0.6 hours $ 2.90 per hour 1.74 Total standard cont per unit 16.90 'Based on machine-hours During June the plant produced 5,000 pools and incurred the following costs: a. Purchased 21,500 pounds of materials at a cost of $3.25 per pound b. Used 16,300 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be Ignored.) c. Worked 4,600 direct labor hours at a cost of $710 per hour. d. incurred variable manufacturing overhead cost totaling 510,890 for the month. A total of 3,300 machine-hours was recorded c. Worked 4,600 direct labor-hours at a cost of $7.10 per hour. d. Incurred variable manufacturing overhead cost totaling $10,890 for the month. A total of 3,300 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 (1) above by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 la Compute the following variances for June, materials price and quantity variances 1b. Compute the following variances for June, labor rate and efficiency variances 10. Compute the following variances for June, variable overhead rate and efficiency variances (Do not round your intermediate calculations. Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect (1. zero variance). Input all amounts as positive values.) Show less 1a. Material price variance ta. Material quantity variance 16. Labor rate variance 15. Labor efficiency variance 10. Variable overhead rate variance 10. Variable overhead efficiency variance Required 2 > 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the Complete this question by entering your answers in the tabs below. 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 "F* for favorable, "U" for unfavorable, and "None" for no effect cl.e.. zero variance). Input the amount as positive value.) Not variance Step by Step Solution
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