Mansbridge Moldings manufactures a plastic wagon at its MuskokaPlant. The standard cost for one wagon is as follows: Direct materials Variable manufacturing overhead Direct labour Total standard cost Standard Quantity or Hours 1.40 kilograms 0.90 hours Standard Cost Standard Price or Rate $4.00 per kilogram $ 5.60 $7.00 per hour 6.30 0.30 machine-hours $2.00 per machine-hour 0.60 $12.50 The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 15,200 pools; the normal volume is 15,350 pools per month. Fixed costs are allocated using machine-hours. Flexible Budgeted Sales (15,200 pools) Less: Variable expenses: Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin Less: Fixed expenses: Manufacturing overhead i $ 456,000 190,000 Actual $ 456,000 205,690 20,300 20,300 210,300 225,998 245,700 230,010 132,000 132,000 85,120 85,120 217,120 217,120 Selling and administrative Total fixed expenses Net income. $ 28,580 $ 12,890 "Contains direct materials, direct labour, and variable manufacturing overhead. 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. 31,100 kilograms of materials were purchased at a cost of $3.90 per kilogram. b. Fake 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 $17,600 for the month was incurred. A total of 4,400 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. 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 c. Variable overhead spending 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).) Variable overhead spending variance Variable overhead efficiency variance