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: Foxible Budget Actual $210,000 $210,000 Sales (3,000 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) 38,220 15,000 53, 220 156, 780 49,235 15,000 54,235 145, 765 56,000 66,000 81,000 81,000 147,000 147.000 $ 9,780 $ (1.235) *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 0.5 hours Standard Price or Rate $ 2,00 per pound 57.20 per hour Standard Cost 3.00 3.60 Direct materials Direct Tabor