Miller Toy 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: Budgeted $180.000 Actual $ 180,000 Sales (4,000 pools) Variable expenses Variable cost of goods sold" Variable selling expenses Total variable expenses Contribution margin Fixed expenses Manufacturing overhead Selling and administrative Total forced expenses Net operating income 37720 15.000 100 5927-20 127 280 40 210 15.000 64 210 115.790 51.000 0 000 117.000 $ 10.280 51.000 66000 117 000 (1.210) $ *Contains direct materials, direct labor, and variable manufacturing overhead. 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 variable cost of goods sold. She has been provided with the following standard cost per swimming pool: Standard Quantity or Hours 3.1 pounds 0.4 hours 0.3 hours" Direct materials Direct labor Variable manufacturing overhead Total standard cost Standard Price or Rate $2.10 per pound $6.10 per hour $1.60 per hour Standard Cost $ 6.51 0.48 Based on machine-hours. During June the plant produced 4.000 pools and incurred the following costs: a. Purchased 17,400 pounds of materials at a cost of $2.55 per pound b. Used 12,200 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 2.200 direct labor-hours at a cost of $5.80 per hour. d. Incurred variable manufacturing overhead cost totaling $3,000 for the month. A total of 1,500 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. Materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance).) Material price variance Material quantity variance $ $ 7,830 420F b. Labor rate and endency van ances. (Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance. s Laborrate variance Labor efficiency variance 66 3.860 U $ c. Variable overhead rate and efficiency variances. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effectie, zero variance).) Variable overhead rate variance Variable overhead efficiency variance 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month (Input all values as positive amounts. Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effectie., zero variance). Summary of variances: Material price variance Mai cuantity variance Laborrate variance Labor efficiency variance Variable overhead rate variance Variable overhead officiency variance Not variance S 0