Check 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 25 . Texte trudget Acto sales 1.000 poola) $200,000 $200,000 Valex Variable cost of good old 54.100 47,230 Variable selles 13,000 10.000 Total variable expenses Contribution margin Vixed exp amatu overhead 52.000 52.000 Ben and administrative 67.000 67.000 Total tixed expenses 11,000 119,000 Het operating income lors) 310.9005 (230 *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 Pire standard Prime Die materiais DLL Variable sourire Total and open OLEY 3. po 0.5 hours 1.6 h 5310 5.10 TO PER standard Cat 1.04 3.10 Based on machine hours During June, the plant produced 5.000 pools and incurred the following costs 6 5 During June, the plant produced 5,000 pools and incurred the following costs o. Purchased 21000 pounds of materials at a cost of $265 per pound. b. Used 15,800 pounds of materials in production. (Finished goods and work in process inventores are insignificant and can be ignored) c. Worked 3,100 direct labor-hours at a cost of $5.90 per hour d. Incurred variable manufacturing overhead cost totaling $4,830 for the month. A total of 2,300 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: 0. Materials price and quantity variances. b. Labor rate and efficiency variances c. Variable overhead rate and efficiency voriances 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. Mequired: Required2 1a Compute the following variances for June, materials price and quantity variances 1b. Compute the following variances for June, labor rate and efficiency variances 1c. Compute the following variances for June, variable overhead rate and efficiency variances (Do not found your intermediate calculations. Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and None for no effect te zero variance). Input al amounts as positive values.) 6 Complete this question by entering your answers in the tabs below. 25 Required 1 Required 2 Book 1a. Compute the following variances for June, materials price and quantity variances. 1b. Compute the following variances for June, labor rate and efficiency variances 1c. 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 "F" for favorable, "U" for unfavorable, and "None for no effect (le, zero variance). Input all amounts as positive values.) Show less ta Material price variance Material quantity variance 1. Laborrate vanance Labor efficiency variance 10. Variable overhead rate variance Variable overhead officiency variance Required 2 > 6 25 d. Incurred variable manufacturing overhead cost totoiling $4,830 for the month. A total of 2,300 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. Laborrate and efficiency variances Variable overhead rate and enclency 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 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 Fifor favorable. "U" for unfavorable, and "None" for no effect (.e. 2ero variance). Inout all amounts as positive values)
