For this question, I require 2a. The net variable is unfavorable, but $16220 is incorrect. I do not have an answer for part 3. For part 4, fixed overhead budget variance is no effect. I do not have the correct dollar amount. Fixed overhead volume variance is unfavorable, but I do not have the correct dollar amount.

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The standard cost for one pool is as follows: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 1.30 kilograms $ 4.00 per kilogram $ 5.20 Direct labour 0.80 hours $ 6.00 per hour 4.80 Variable manufacturing overhead 0.40 machine-hours $ 2.00 per machine-hour 0.80 Total standard cost $ 10.80 The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 15,200 pools; the normal volume is 15,350 pools per month. Fixed costs are allocated using machine-hours. Flexible Budgeted Actual Sales (15,200 pools) $ 456,000 $ 456,000 Less: Variable expenses: Variable cost of goods sold* 164,160 179,090 Variable selling expenses 20,300 20,300 Total variable expenses 184,460 199,390 Contribution margin 271,540 256,610 Less: Fixed expenses: Manufacturing overhead 132,000 132,000 Selling and administrative 85,120 85,120 Total fixed expenses 217,120 217,120 Net income $ 54,420 $ 39,490 *Contains direct materials, direct labour, and variable manufacturing overhead. Janet Dunn, the general manager of the Westwood Plant, wants to get things under control. She needs information about the operations in June since the income statement signalled that the problem could be due to the variable cost of goods sold. Dunn learns the following about operations and costs in June: 30,700 kilograms of materials were purchased at a cost of $3.00 per kilogram. 24,200 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored.) 11,900 direct labour-hours were worked at a cost of $8 per hour. Variable manufacturing overhead cost totalling $17,790 for the month was incurred. A total of 5,930 machine-hours was recorded. It is the companys policy to close all variances to cost of goods sold on a monthly basis. Required: 1. Compute the following variances for June: a. Direct materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) b. Direct labour rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) c. Variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 2-a. Summarize the variances you computed in part (1) by showing the net overall favourable or unfavourable variance for the month. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 2-b. What impact did this figure have on the company's income statement? 3. Pick out the two most significant variances you computed in part (1). (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) check all that apply 4. Compute the fixed overhead cost variances. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)