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Miller loy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format

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Miller loy 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: -Contains direct materials, direct laboc, and varlable manufacturing overtiead. 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 vasiahle cost of goods soid: She has been provided with the following standard cost pet swimming pool: "Based on machine hours. Janet Dunn, who has just been appointed general tranager of the Westwood Plant, has been given instructions to "get things ander cortrol* Upon revewing the plant's income statenient. Ms. Dunn has concluded that the major problems lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming poot "Based on machine.hours: During June, the plant produced 8.000 pools and incurred the following costs: a. Purchased 33.800 pounds of materials at a cost of $265 per pound. b. Used 28.600 pounds of materiaks in productlon. (Finished goods and work in process irvemtories are insigniticant and can be ignored) c. Worked 4.600 direct labor-hours at a cost of $7.40 per houk. d. Incured varlable manufacturing overhead cost totaling $12.600 for the month. A total of 3,500 machine hours was recorded. It is the company's policy to close all varlances to cost of goods sold on a monthly basis. Required: 1. Compute the following varlances for June: a. Materials price and quantity varlances. b. Labor fiate and efficiency variances. c. Variable overhead rate and efficlency variances. 2. Summarize the varlances that you computed in (7) above by showing the net overall favorable or unfavorable varlance for the montli

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