During June, the plant produced $4,000$ pools and incurred the following costs:

a$.$ Purchased $17,400$ pounds of materials at a cost of $$2\mathrm{.}55$ per pound.

b$.$ Used $12,200$ pounds of materials in production. $($Finished goods and work in process inventories are insignificant and can be

ignored.$)$

c$.$ Worked $2,200$ direct labor$-$hours at a cost of $$5\mathrm{.}80$ per hour.

d$.$ Incurred variable manufacturing overhead cost totaling $$3,000$ for the month. A total of $1,500$ machine$-$hours was recorded.

It is the company's policy to close all variances to cost of goods sold on a monthly basis.

Required:

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.

Summarize the variances you computed in requirement $1$ 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 you computed in requirement $1$ by showing the net overall favorable or unfavorable variance for the

month.

Note: 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 $A$

Net varianceMiller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant is experiencing problems as shown by its June contribution format income statement below: During June, the plant produced $4,000$ pools and incurred the following costs:

a$.$ Purchased $17,400$ pounds of materials at a cost of $$2\mathrm{.}55$ per pound.

b$.$ Used $12,200$ pounds of materials in production. $($Finished goods and work in process inventories are insignificant and can be

ignored.$)$

c$.$ Worked $2,200$ direct labor$-$hours at a cost of $$5\mathrm{.}80$ per hour.

d$.$ Incurred variable manufacturing overhead cost totaling $$3,000$ for the month. A total of $1,500$ machine$-$hours was recorded.

It is the company's policy to close all variances to cost of goods sold on a monthly basis.

Required:

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.

Summarize the variances you computed in requirement $1$ 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 you computed in requirement $1$ by showing the net overall favorable or unfavorable variance for the

month.

Note: 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 l

Flexible Budget Actual

Sales $(4,000$ pools$)$ $ $180,000$ $ $180,000$

Variable expenses:

Variable cost of goods sold$*37,72049,210$

Variable selling expenses $15,00015,000$

Total variable expenses $52,72064,210$

Contribution margin $127,280115,790$

Fixed expenses:

Manufacturing overhead $51,00051,000$

Selling and administrative $66,00066,000$

Total fixed expenses $117,000117,000$

Net operating income $($loss$)$ $ $10,280$ $ $(1,210)$

$*$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 concluded 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 Standard Price or Rate Standard Cost

Direct materials $3\mathrm{.}1$ pounds $ $2\mathrm{.}10$ per pound $ $6\mathrm{.}51$

Direct labor $0\mathrm{.}4$ hours $ $6\mathrm{.}10$ per hour $2\mathrm{.}44$

Variable manufacturing overhead $0\mathrm{.}3$ hours$*$ $ $1\mathrm{.}60$ per hour $0\mathrm{.}48$

Total standard cost per unit $ $9\mathrm{.}43$

$*$Based on machine$-$hours.

During June, the plant produced $4,000$ pools and incurred the following costs:

Purchased $17,400$ pounds of materials at a cost of $$2\mathrm{.}55$ per pound.

Used $12,200$ pounds of materials in production. $($Finished goods and work in process inventories are insignificant and can be ignored.$)$

Worked $2,200$ direct labor$-$hours at a cost of $$5\mathrm{.}80$ per hour.

Incurred variable manufacturing overhead cost totaling $$3,000$ for the month. A total of $1,500$ machine$-$hours was recorded.

It is the company$$s policy to close all variances to cost of goods sold on a monthly basis.

Required:

Compute the following variances for June:

Materials price and quantity variances.

Labor rate and efficiency variances.

Variable overhead rate and efficiency variances.

Summarize the variances you computed in requirement $1$ by showing the net overall favorable or unfavorable variance for the month.