Check my work 3 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: 6 Flexible Actual Budget $225,000 $225,000 points Sales (3,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses 44,520 21,000 65,520 159,480 56,975 21,000 77,975 eBook Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Print 147,025 References 62,000 87,000 62,000 87,000 149,000 149,000 $ 10,480 $ (1,975) Net operating income (loss) 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: Check my work 3 Standard Quantity or Standard Standard Price or Rate Cost Hours 2.30 per pound $ 7.80 per hour $ 3.30 per hour $ 8.51 Direct materials 3.7 pounds Direct labor 0.6 hours 4.68 0.5 hours* Variable manufacturing overhead 1.65 6 $14.84 Total standard cost per unit points Based on machine-hours eBook During June, the plant produced 3,000 pools and incurred the following costs: Print cost of $2.75 per pound. a. Purchased 16,100 pounds of materials at b. Used 10,900 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 2,400 direct labor-hours at a cost of $7.50 per hour. d. Incurred variable manufacturing overhead cost totaling $6,660 for the month. A total of 1,800 machine-hours was recorded References 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