Mansbridge Moldings manufactures a plastic wagon at its MuskokaPlant. The standard cost for one wagon is as follows: Standard Quantity or Hours 1.40 kilograms 0.80 hours Direct materials Direct labour Variable manufacturing overhead 0.40 machine-hours Standard Price or Rate $4.00 per kilogram $6.00 per hour $2.00 per machine-hour Standard Cost $ 5.60 4.80 0.80 $11.20 Save & Exit Submit 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 15,000 pools; the normal volume is 15,150 pools per month. Fixed costs are allocated using machine-hours. Flexible Budgeted Actual Sales (15,000 pools) $450,000 $450,000 Less: Variable expenses: Variable cost of goods sold+ 168,000 188,623 Variable selling expenses 20,000 20,000 Total variable expenses. 188,000 208,623 Contribution margin 262,000 241,377 Less: Fixed expenses: Manufacturing overhead 130,000 130,000 84,000 214,000 84,000 214,000 Selling and administrative Total fixed expenses. Net income $ 48,000 $ 27,377 "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. 30,000 kilograms of materials were purchased at a cost of $3.70 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.) c. 11,800 direct labour-hours were worked at a cost of $7 per hour. d. Variable manufacturing overhead cost totalling $17,023 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: Saved Help Save & Exit Subm 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 "P" 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).)