Check my work 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: points Flexible Actual Budget $ 260,000 $260,000 eBook Sales (5,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses : Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 84,500 17,000 101,500 158,500 98,865 17,000 115, 865 144, 135 Print References 65,000 65,000 83,000 83,000 148,000 148,000 10,500 $ (3,865) $ *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 Cost Standard Quantity or Hours 3.3 pounds 0.8 hours 0.6 hours* Standard Price or Rate $ 2.80 per pound $ 7.40 per hour $ 2.90 per hour $ Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit 9.24 1.74 $ 16.90