Check Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as showm by its June contribution format income statement below: Sales (3,000 pools) Variable expenses: Variable cost of goods solde Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) Flexible Budget $ 175,000 Actual $175,000 24,300 58,310 10,000 10,000 34,300 68,310 140,700 106,690 50,000 50,000 65,000 65,000 115,000 115,000 $ 25,700 $ (8,310) "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: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit "Based on machine-hours. Standard Quantity or Standard Price or Hours 3.0 pounds 0.3 hours 8.2 hours Standard Rate $2.00 per pound $ 6.00 per hour $ 1.50 per hour Cost $ 6.00 1.80 0.30 $8.10 DEC < Prev 3 of 4 Next > )) W