Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HW Help Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June

image text in transcribed
image text in transcribed
image text in transcribed
HW Help 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. Vai Badet Metal wales (1,090 pools) 225.000 8325.000 Variable expenses Variable cost of goods sold. 44,530 56,975 Variable selling expenses 31,000 21.00 Total variable expenses 3320 22 215 Contributia angin 15,406,025 Fixed expenses Manufacturing overhead 69,000 22.000 selling and administrative $12000 02.000 Total fixed expenses 10.000169000 Net operating incon (los) 10,40 11.9751 "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 standard Quantity or Standard Standard Price or Mate Coat Hours Direct materiale 3:7 pound $ 2.35 per pound 3 8.51 Diret labor 0.6 hours $ 7.5 hour 4.60 Variable sanufacturing overhead 0.5 hours 5 1.50 per hour 1.5 16.80 Total standard cost per unit Based on machine hours During Juno, the plant produced 3,000 pools and incurred the following costs a. Purchased 16,100 pounds of materials at a cost of $275 per pound b. Used 10.900 pounds of materials in production Finished goods and work in process inventones are insignificant and can be Ignored) Worked 2,400 direct labor hours at a cost of $7.50 per hour. a incurred variabile manutacturing overhead cost totaling $6,660 for the month. A total of 1800 machine hours was recorded It is the company's policy to close all variances to cost of goods sold on a monthly basis 2. Summarize the variances that you computed in (1) above by showing the net overall favorable Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Summarize the variances that you computed In (1) above by showing the net overall favorable or un month. (Indicate the effect of each variance by selecting "p" for favorable, "U" for unfavorable, and zero variance). Input all amounts as positive values.) + Net variance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Risk Management In Organisations An Integrated Case Study Approach

Authors: Margaret Woods

2nd Edition

1138632333, 9781138632332

More Books

Students also viewed these Accounting questions