Check my 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 Flexible Budget Actual Sales (7,200 pools) $ 255,000 $ 255,000 Variable expenses: Variable cost of goods sold 85,400 104,590 Variable selling expenses 15,000 15,000 Total variable expenses 100,400 119,590 Contribution margin 154,600 135,410 Fixed expenses: Manufacturing overhead 64,000 64,000 Selling and administrative 79,000 79,000 Total fixed expenses 143,000 143,000 Net operating income (loss) $ 11,600 $ (7,590) Contalns direct materials, direct labor, and variable manufacturing overhead. ces 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 Hours 4.0 pounds 0.3 hours 0.2 hours Standard Price or Rate $ 2.40 per pound $ 7.00 per hour $ 2.50 per hour Standard Cost $ 9.60 2.10 0.50 $ 12.20 During June the plant produced 7,000 pools and incurred the following costs a. Purchased 33,000 pounds of materials at a cost of $2.85 per pound. b. Used 27,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 2,700 direct labor-hours at a cost of $6.70 per hour. d. Incurred variable manufacturing overhead cost totaling $4.930 for the month. A total of 1,700 machine-hours was recorded 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 (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 1a, Compute the following variances for June, materials price and quantity varlances. 1b. Compute the following variances for June, labor rate and efficiency varlances. 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 1a. Material price variance la Material quantity variance 1b Labor rate vanence 16. Labor efficiency variance 16 Variable overhead rate variance 1c. Variable overhead efficiency variance 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 (I.e., zero variance). Input the amount as positive value.) Net variance