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: BudgetedActual $175,000 $175,000 Sales (3,000 pools) Variable expenses 58,310 10,000 Variable cost of goods sold* 24,300 10,000 Variable selling expenses Total variable expenses Contribution margin Fixed expenses 34,300 68,310 140.700 106.690 Manufacturing overhead Selling and administrative 50,000 50.000 65,000 65,000 115.000 15.000 $25,700 S (8,310) lotal fixed expenses Net operating income (loss) 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 Standard Price Standard or Rate or Hours 3.0 pounds 0.3 hours 0.2 hours* Cost Direct materials Direct labor Variable manufacturing overhead $2.00 per pound$ $6.00 per hour $1.50 per hour $ 6.00 1.80 0.30 Total standard cost $ 8.10 "Based on machine-hours