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 Flexible BudgetActual Sales (3,000 pools) Variable expenses: $175,000 $175,000 24,300 10,000 34,300 Variable cost of goods sold* 58,310 10.000 68,310 140,700 106,690 Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative 50,000 50,000 65.000 115,000 115,000 65,000 Total fixed expenses Net operating income (loss) $ 25,700 (8,310) 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 Standard Price Standard Hours 3.0 pounds 0.3 hours 6.00 per hour 0.2 hours 1.50 per hour or Rate Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit 2.00 per pound $6.00 1.80 0.30 $ 8.10 Based on machine-hours. During June the plant produced 3,000 pools and incurred the following costs: a. Purchased 23,000 pounds of materials at a cost of $3.20 per pound. b. Used 8,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 2,000 direct labor-hours at a cost of $5.70 per hour. d. Incurred variable manufacturing overhead cost totaling $1,710 for the month. A total of 900 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( above by showing the net overall favorable or unfavorable variance for the month