Comprehensive variance analysis

Saved Problem 9-18 Comprehensive Variance Analysis [LO94, LO9-5, L09-6] Miller Toy Com by its June contribution format income statement below: pany manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown lexibl Budge Sales (4,000 pools) Variable expenses: $239, 000 $239,000 Variable cost of goods sold* 57,680 70, 390 16,00016,000 Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead 72,000 72,000 82,000 82, 000 154,000 154,000 S 11,320 (1,390) Selling and administrative Total fixed expenses 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: Quantity or Standard Price Standard Houra 3.2 pounds 0.6 hours 7.30 per hour .5 hours 2.80 per hour 2.70 per pound 8.64 4.38 Direct materials Direct labor Variable manufacturing overhead 1.40 $14.42 Total standard cost per unit Racad on marhina.hnure ^