Hi, the material price variance is incorrect, the overhead variable rate variance is incorrect, and the net variance is incorrect as well. Can you help? Thanks!

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:

	Flexible Budget	Actual
Sales (3,000 pools)	$ 250,000	$ 250,000
Variable expenses:
Variable cost of goods sold*	53,430	67,000
Variable selling expenses	26,000	26,000
Total variable expenses	79,430	93,000
Contribution margin	170,570	157,000
Fixed expenses:
Manufacturing overhead	67,000	67,000
Selling and administrative	92,000	92,000
Total fixed expenses	159,000	159,000
Net operating income (loss)	$ 11,570	$ (2,000)

*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 plants 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		Standard Price or Rate		Standard Cost
Direct materials	4.2	pounds	$ 2.80	per pound	$ 11.76
Direct labor	0.5	hours	$ 8.30	per hour	4.15
Variable manufacturing overhead	0.5	hours*	$ 3.80	per hour	1.90
Total standard cost per unit					$ 17.81

*Based on machine-hours.

During June, the plant produced 3,000 pools and incurred the following costs:

Purchased 17,600 pounds of materials at a cost of $3.25 per pound.

Used 12,400 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

Worked 2,100 direct labor-hours at a cost of $8.00 per hour.

Incurred variable manufacturing overhead cost totaling $7,560 for the month. A total of 1,800 machine-hours was recorded.

It is the companys 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 that you computed in requirement 1 by showing the net overall favorable or unfavorable variance for the