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 Standard Price standard Quantity or Or Rate Coat Hot 3.5 Direct materiale pounds $ 7.35 pound Direct labor 0.4 hours 57.60 per hour 3.04 Variable manufacturing 0.3 0.93 overhead 03.10 per hour hours total standard cost per unit 11.32 $2.10 per "Based on machine-hours. During June, the plant produced 7000 pools and incurred the following costs: a. Purchased 29,500 pounds of materials at a cost of $2.55 per pound. Used 24,300 pounds of materials in production (Finished goods and work in process inventories are Insignificant and can be ignored.) c. Worked 3.400 direct labor hours at a cost of $7.30 per hour d. Incurred variable manufacturing overhead cost totaling $8,400 for the month. A total of 2.400 machine hours was recorded 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. Materials 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 (t) above by showing the net overall favorable or unfavorable variance for the month Complete the question by entering your in the tabs below la Compute the following wance for and water and quality 16. Compute the wing verances for e, aber an den Warenes 1. Compute the flowing arunces for there and efficiency Do not your interfectos by over for Madre w wwwww 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 Price Standard Hours or Rate Cont 3.5 Direct materials pounds pound $ 7.35 Direct labor 0.4 hours $7.60 per hour Variable manufacturing 0.3 0.93 overbead $3.10 per hour hours Total standard cont per unit $11.32 $2.10 per 3.04 Based on machine-hours. During June, the plant produced 7,000 pools and incurred the following costs: a Purchased 29,500 pounds of materials at a cost of $2.55 per pound. b. Used 24 300 pounds of materials in production (Finished goods and work in process inventories are Insignificant and can be ignored.) c. Worked 3,400 direct labor hours at a cost of $7.30 per hour. a. Incurred variable manufacturing overhead cost totaling $8,400 for the month. A total of 2.400 machine hours was recorded. 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. Materials price and quantity variances b. Labor rate and efficiency variances Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month Complete this question by entering your answers in the tahshalaw. Suthat you come (1) hewing the overall favorable or untevate variance for the motor for future and for me put pow.) Per 22
