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: Print Flexible Budget Actual $235,000 $235,000 Sales (7,000 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) 78,540 18,000 96,540 138,460 96,420 18,000 114,420 120,580 54,000 54,000 69,000 69,000 123,000 123,000 $ 15,460 $ (2,420) *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 Quantity or Hours 3.4 pounds 0.3 hours 0.6 hours* Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Price or Rate $ 2.40 per pound $ 6.40 per hour $ 1.90 per hour Standard Cost $ 8.16 1.92 1.14 $ 11.22 *Based on machine-hours. 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. 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 (i.e., zero variance). Input all amounts as positive values.) Show less A 1a. Material price variance Material quantity variance 16. Labor rate variance Labor efficiency variance 1c.Variable overhead rate variance Variable overhead efficiency variance 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: Print Flexible Budget Actual $235,000 $235,000 Sales (7,000 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) 78,540 18,000 96,540 138,460 96,420 18,000 114,420 120,580 54,000 54,000 69,000 69,000 123,000 123,000 $ 15,460 $ (2,420) *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 Quantity or Hours 3.4 pounds 0.3 hours 0.6 hours* Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Price or Rate $ 2.40 per pound $ 6.40 per hour $ 1.90 per hour Standard Cost $ 8.16 1.92 1.14 $ 11.22 *Based on machine-hours. 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. 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 (i.e., zero variance). Input all amounts as positive values.) Show less A 1a. Material price variance Material quantity variance 16. Labor rate variance Labor efficiency variance 1c.Variable overhead rate variance Variable overhead efficiency variance
