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. Matertals price and quantity variances 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. Complete this question by entering your answers in the tabs below. 1a. Compute the following variances for June, materials price and quantty varances. 16. Compute the following variances for -une, labor rate and efficiency variances. 1c. Compute the following variances for June, variable overnead rate and efficiency variances. (Do not round vour intermediate calculations tndicate the effect of each variance by selecting "F- for favorable, "O" for: untavorable, and "None" for no effect (i.e. zero variance). input all amounts as positlve values.) 1a. Compute the following variances for June, materials price and quantity variances. 1b. Compute the following variances for June, labor rate and efficiency variances. 1c. Compute the following variances for June, variable overhead rate and efficiency variances: (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" fo unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 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 month. Complete this question by entering your answers in the tabs below. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or favavorable variance for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, ahd "None" for no effect (i.e. zero variance), input all amounts as positive valuos.) 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 matecials, direct labor, and variable maniaacturing overhead Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to "get things under contiol Upon reviewing the plant's income statement Ms. Ounn 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: 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: 'Based on machine-hours. During June, the plant produced 4,000 pools and incurred the following costs: a. Purchased 22,200 pounds of materials at a cost of $3,35 per pound. b. Used 17,000 pounds of materials in production. (Finished goods ond work in process inventories are insignificant and can be ignored) c. Worked 3,000 direct labor-hours at a cost or $810 per hour. d. Incurred variable manufacturing overhead cost totaling $6,450 for the month. A total of 1,500 machine-hours wos recorded It is the company's policy to close all variances to cost of goods sold on a monthly basis. 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. Complete this question by entering your answers in the tabs below. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or unfavorable variance for the month. (tindicate the effect of each variance by selecting "F" for favorable, "Y" for unfavorable, and "None" for no effect (ie, zero variance), tnput all amounts as positive valies?) 1a. Compute the following variances for June, materials price and quantity variances. 1b. Compute the following variances for June, labor rate and efficiency variances. 1c. Compute the following variances for June, variable overhead rate and efficiency variances. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F- for favorable, "U" for unfavorable, and "None" forino effect (i.e. z zero variance). Input all amounts as positive values.)
