Mansbridge Moldings manufactures a plastic wagon at its MuskokaPlant. The standard cost for one wagon is as follows: Direct materials Standard Quantity or Hours 1.30 kilograms 0.90 hours $5.00 per hour Standard Cost Standard Price or Rate $4.00 per kilogram $ 5.20 Direct labour 4.50 Variable manufacturing overhead 0.40 machine-hours $3.00 per machine-hour 1.20 Total standard cost $10.90 The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 14,900 pools; the normal volume is 15,050 pools per month. Fixed costs are allocated using machine-hours. Sales (14,900 pools) Flexible Budgeted $447,000 Actual $447,000 Less: Variable expenses: Variable cost of goods sold 162,410 202,164 Variable selling expenses 19,900 19,900 Total variable expenses 182,310 222,064 Contribution margin 264,690 224,936 Less: Fixed expenses: Manufacturing overhead 129,000 129,000 Selling and administrative 83,440 83,440 Total fixed expenses 212,440 212,440 $ $2,250 $ 12,496 Net income "Contains direct materials, direct labour, and variable manufacturing overhead. Peter Mansbridge, the general manager of the Muskoka Plant, 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. 30,900 kilograms of materials were purchased at a cost of $3.90 per kilogram. b. 24,500 kilograms of materials were used in production (Finished goods and work-in-process inventories are insignificant and can be ignored.) c11,800 direct labour-hours were worked at a cost of $7 per hour. d. Variable manufacturing overhead cost totalling $24,654 for the month was incurred. A total of 5.870 machine-hours was recorded It is the company's policy to close all variances to cost of goods sold on a monthly basis. De ignored.) c. 11,800 direct labour-hours were worked at a cost of $7 per hour. d. Variable manufacturing overhead cost totalling $24,654 for the month was incurred. A total of 5,870 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).) Material price variance Material quantity variance b. Direct labour rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Labour rate variance Labour efficiency variance