managerial accounting 16th editon

Problem 10-15 (Static) Comprehensive Variance Analysis (LO10-1, LO10-2, LO10-3] 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 $ 675,000 $ 675,00 435,000 461,892 20,000 20,000 455, eee 481,890 220,000 193, 110 Sales (15,000 pools) Variable expenses Variable cost of goods sold" Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 13e, een 130,000 84, ece 84, ce 214,80 214,000 $ 6,000 $ (20,890) *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 2:36P 11/19/28 50F 9 AGD O RI Check my work 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 Cost Direct materials 3.0 pounds $ 5.ee per pound $ 35.00 Direct labor 0.8 hours $16.00 per hour 12.10 Variable manufacturing overhead 2.4 hours $ 3.00 per hour 1.2e Total standard cost per unit $ 29.00 "Based on machine-hours During June, the plant produced 15,000 pools and incurred the following costs a. Purchased 60.000 pounds of materials at a cost of $4 95 per pound b. Used 49,200 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be Ignored) Worked 11,800 direct labor-hours at a cost of $17.00 per hour d. Incurred variable manufacturing overhead cost totaling $18,290 for the month A total of 5,900 machine-hours was recorded It is the company's policy to close all variances to cost of goods sold on a monthly basis. 50'F A 2:36 PM 11/19/2021 ORI ct 0 Saved Help Sove & Exit Sube Check my wor ignored.) c. Worked 11,800 direct labor-hours at a cost of $17.00 per hour d Incurred variable manufacturing overhead cost totaling $18,290 for the month A total of 5,900 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 (1) above by showing the net overall favorable or unfavorable variance for month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 lune variable overhead rate and efficiency variances. A 50F g 0 D nect 6 Saved Help Save & Exit Subm Check my work Required 1 Required 2 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" for no effect (ie, zero variance). Input all amounts as positive values.) Show less 1a. Material price variance Material quantity variance 16. Labor rate variance Labor efficiency variance 10. Variable overhead rate variance Variable overhead efficiency variance Required: Required 2 > 13 of 14 Next Torr