Check Miller Toy Company manufactures a plastic swimming pool at its Westwood Piant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible Dudget Actual Sales 4.000 pools) $ 180,000 5.180.000 Variable expenses Variable cost of goods solde 37,720 49,210 Variable selling expenses 15.000 15,000 Total variable expenses 52.720 64,210 Contribution margin 127.280 115,790 Fixed expenses Manufacturing overhead 51.000 51,000 Selling and administrative 66,000 66,000 Total fixed expenses 117.000 112.000 Het operating income (los) $ 10,20 5 1,210) *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 ce Standard Quantity or standard Hours Standard Price or hate coat Direct materials 3.1 pounde 5 2.10 per pound 5 6.51 Direct labor 0.4 hours 5 6.10 per hour 2.44 Variable manufacturing overhead 0.) hours $ 1.60 per hour 0.48 Total standard cost per unit $9.43 Based on machine hours. During June the plant produced 4,000 pools and incurred the following costs. a. Purchased 17.400 pounds of materials at a cost of $2.55 per pound. b. Used 12,200 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 2.200 direct labor-hours at a cost of $5.80 per hour d. Incurred variable manufacturing overhead cost totaling $3,000 for the month. A total of 1,500 machine-hours was recorded Pont Requirea: 1. Compute the following variances for June: a. Materials price and quantity variances. (Hint: the amount of materials purchased is different from the amount of materials used in this problem - see the Chapter 9 slides if you don't recall why this matters for the materials variances.) b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances 2. Summarize the variances that you computed in () 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 es 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 for favorable, "U" for unfavorable, and "None for no effect (., rero variance), Input all amounts as positive values.) Show less 1a. Material price variance Ta Material quantity variance 1b. Labor rate variance 16. Labor efficiency variance tc. Variable overhead rate variance te Variable overhead efficiency variance ints 01:47:56 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. (Hint: the amount of materiais purchased is different from the amount of materials used In this problem - see the Chapter 9 slides if you don't recall why this matters for the materials variances) b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. eBook Print 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month References 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 " for favorable. "U" for unfavorable, and "None" for no effect. zero variance). Input the amount as positive value) Net variance