Check my work 3 Problem 9-18 Comprehensive Variance Analysis (L09-4, LO9-5, LO9-6) 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: 5 Sales (5.000 pools) Variable expenses Variable cost of goods sold Variable selling expenses Total variable expenses Contribution artin Fixed expenses Manufacturing overhead Selling and administrative Total Fixed expenses Net operating income (loss) Flexible Budget Actual $ 222,000 $272.000 14,250 59.765 23.000 23 000 107250763 15012 64.000 66,000 89,000 89,000 15000 153.000 11,750 $ (3,765) *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: Standard tard Prire Standard por WOO Check my work 3 Standard Quantity or Hour 3. pounds 0 hours 0.2 hours Direct materials Direct labor Variable unufacturing overhead Toral standard cont per unit Standard Price or Rate 1 2.50 per pound 58.00 per hour $3.50 per hour Standard Cost $9.75 6.40 0.70 $16.85 - . Based on machine-hours During June the plant produced 5,000 pools and incurred the following costs a. Purchased 24,500 pounds of materials at a cost of $2.95 per pound b. Used 19,300 pounds or materials in production (Finished goods and work in process inventories are insignificant and can be Ignored) c. Worked 4,600 direct labor hours at a cost of $7.70 per hour d. Incurred variable manufacturing overhead cost totaling $5.070 for the month. A total of 1,300 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. Labor rate and efficiency variances c. Variable overhead rate and efficiency variances. 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 variances 1b. Compute the following variances for June, labor rate and efficiency variances 10. 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 'F for favorable for unfavorable, and "None for no effect ( zero variance). Input all amounts as positive values.) Show less Ta Material price variance Material quantity variance 1b. Labor rate variance Labor efficiency variance Tc. Variable overhead rate variance Variable overhead efficiency variance 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 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 (ie, zero variance). Input the amount as positive value) af variance
