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. Budget $1239,000 $219.000 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 fixed expenses Net operating income (loss) 57.680 16.000 73,680 165020 70390 16.ee 8639 152.610 22 Dec 82.ee $2,000 320 ( 390) *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 Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit *Based on machine-hours. During June the plant produced 4.000 pools and incurred the following costs: a. Purchased 17.800 pounds of materials at a cost of $3.15 per pound. b. Used 12.600 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 3.000 direct labor-hours at a cost of $700 per hour d. Incurred variable manufacturing overhead cost totaling $7360 for the month A total of 2.300 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 Base unde -OUS During June the plant produced 4,000 pools and incurred the following costs a. Purchased 17,800 pounds of materials at a cost of $315 per pound b. Used 12,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) C. Worked 3.000 direct labor-hours at a cost of $700 per hour d. Incurred variable manufacturing overhead cost totaling $7,360 for the month. A total of 2 300 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 b. Labor rate and efficiency variances c. Variable overhead rate and efficiency variances 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month Complete this question by entering your answers in the tabs below. Required 1 Required 2 1a. Compute the following variances for June, materials price and quantity variances 1b. Compute the following variances for June, labor rate and efficiency variances. 1c. Compute the following variances for June, 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 effect ( zero variance). Input all amounts as positive values.) Show less la Material price variance Material quantity variance 1b. Labor rate variance Labor offidency variance 1c Variable overhead rate variance Variable overhead eficiency variance Baseu on midine-Tours During June the plant produced 4,000 pools and incurred the following costs: a. Purchased 17,800 pounds of materials at a cost of $3.15 per pound. b. Used 12,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 3,000 direct labor-hours at a cost of $7.00 per hour d. Incurred variable manufacturing overhead cost totaling $7,360 for the month. A total of 2,300 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. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable v month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for zero variance). Input the amount as positive value.) Net variance