Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems for some time as shown by its June proit statement below Budgeted Actual 450,000 450,000 Sales (15,000 pools) Less variable expenses 180,000 20,000 200,000 250,000 196,830 20,000 216,830 233,170 Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Less fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses 130,000 84,000 214,000 36.000 130,000 84,000 214,000 19.170 Net protit *Contains direct materials, direct labour, 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 profit 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 or budget cost information per swimming pool Standard quantity Standard price or rate Standard cost 3.0 pounds 2.00 per pound 0.8 hours Direct materials Direct labour Variable manufacturing overhead 0.4 hours 3.00 per hour Total standard cost 6.00 4.80 1.20 12.00 6.00 per hour Based on machine hours