Contains direct materials, direct labor, and vanable 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 lles in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool: "Based on machine-hours. During June, the plant produced 8,000 pools and incurred the following costs a. Purchased 29,000 pounds of materials at a cost of $2.95 per pound. b. Used 23,800 pounds of materials in production. (Finished goods and work in process inveritories are insignificant and can be ignored.) c. Worked 3,800 direct labor-hours at a cost of $6.80 per hour d. Incurred variable manufacturing overhead cost tataling $8,100 for the month. A total of 2,700 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 tate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or unfavorable variance for the month. 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: "Contains direct materials, direct labor, and variable manufacturng oveinead 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 mojor problem lies in the varable cost of goods sold. She has been provided with the following standard cost per swimming pool "Based on machine-hours. During June, the plant produced 8.000 pools and incurred the following costs a. Purchased 29.000 pounds of materials at a cost of $2.95 per pound b. Used 23.800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be 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: "Contains direct matenals, direct labor, and variable manufacturing oveinead Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to gget things under control "Upon reviewing the plants income statement, Ms. Dunn has concluded that the mojor problem lies in the variabie cost of goods sold. She has been provided with the following standard cost per swimming pool "Based on machine-hours. During June, the plant produced 8,000 pools and incurted the following costs a. Purchased 29.000 pounds of materials at a cost of $2.95 per pound b. Used 23.800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be iqnored. Contains direct materiats, 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 soid, She has been provided with the following standard cost per swimming pool: "Based on machine hours. During June, the plant produced 8,000 pools and incurred the following costs a. Purchased 29,000 pounds of materials at a cost of $2.95 per pound. b. Used 23,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 3,800 direct labor-hours at a cost of $6.80 per hour. d. Incurred variable manufacturing overhead cost totaling $8,100 for the month. A total of 2,700 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 varlances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or unfavorable variance for the month
