Mansbridge Moldings manufactures a plastic wagon at its Muskoka Plant. The standard cost for one wagon is as follows: Direct materials Standard Quantity or Hours 1.30 kilograms 0.90 hours Standard Price or Rate $5.00 per kilogram Standard Cost $ 6.50 Direct labour $5.00 per hour 4.50 Variable manufacturing overhead 0.40 machine-hours $4.00 per machine-hour 1.60 $12.60 Total standard cost The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 15,100 pools; the normal volume is 15.250 pools per month. Fixed costs are allocated using machine-hours. Flexible Budgeted Actual Sales (15,100 pools) Less: Variable expenses: Variable cost of goods sold Variable selling expenses $ 453,000 $ 453,000 190,260 206,893 20,100 20,100 Total variable expenses 210, 360 226,993 Contribution margin 242,640 226,007 Less: Fixed expenses: Manufacturing overhead 131,000 131,000 Selling and administrative 84,560 84,560 Total fixed expenses 215,560 215,560 Activate Windows ent Acc X Connect ezto.mheducation.com/ext/map/index.html?_con-con&external browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252Fmghmidd... bokmarks m 53.42 Total fixed expenses Net income 215,560 Saved 215,560 $ 27,080 $ 10,447 *Contains direct materials, direct labour, and variable manufacturing overhead. Help Save & Exit Subm Peter Mansbridge, the general manager of the MuskokaPlant, wants to get things under control. He needs information about the operations in June since the income statement signalled that the problem could be due to the variable cost of goods sold. He obtains the following information about the operations and costs in June: a. 30,200 kilograms of materials were purchased at a cost of $3.90 per kilogram. b. 24,600 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored.) c. 11,600 direct labour-hours were worked at a cost of $8 per hour. d. Variable manufacturing overhead cost totalling $24,313 for the month was incurred. A total of 5,930 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. Direct materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Activate Windows Go to Settibids for