Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The standard cost for one pool is as follows: Standard Quantity or Hours 1.40 kilogram 0.00 hours 0.40 machine hours Direct materials Direct labour Variable manufacturing overhead Total standard cost Standard Cast $ 7.00 4.80 Standard Price or Rate 35.00 per kilogram 36.00 per hour 52.00 per machine hour 512.60 The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 14.800 pools, the normal volume is 19.950 pools per month Fixed costs are allocated using machine hours Flexible Budgeted $444,000 Actual 544000 186,400 19,700 20610 Sales (14,800 pools Less Variable expenses Variable cost of foods sold Varanle selling expenses Total variable expenses Contribution in Les Fixed penses Manufacturing overhead Selling and administrative Total Fedexpenses Net Income 193,250 19,700 212,950 21,050 120,000 12,880 210,0 $ 26,90 120,000 12 210,000 520.10 Contains direct materials, direct labour and variable manotacturing contend Janet Dunn the general manager of the Westwood Plant wants to get things under control she needs information about the operations in June since the income statement sanalled that the problem could be due to the variable cost of goods sold Dunn Jeans the following about operations and costs in June 2:31200 kilograms of materials were purchased at a cost of $400 per logam 24500 kilograms of materials were used in production (Finished goods and work process inventories are insignificant and con De ignored 1 0,170 Crect materials de labour, and variable manufacturing overhead Janet Dann the general manager of the Westwoodantwants to get things under control she needs information about the to in une ce the income statement signated that the bottom could be due to the variable cost of goods sold Dunni learns the show about operations and costs in June 200 grams of materials were purchased at a cost of $100 per kilogram 400 grams of materials were used in production finished goods and work in process inventories are insignificant and con the incred) 11.00 Get tabour hours were worked at a cost of 57 per hour Var manufacturing overhead cost totaling $19,350 for the month was incurred A total of 4,300 machine hours was recorded the company policy to close all variances to cost of goods sold on a monthly basis Required Compute the following variances for June Det materials price and quantity vartances (Indicate the effect of each variance by selecting "P" for favourable, "U" for unterble, and "None" for no effectie. rere variance).) b. Direct labour rate and efficiency vanances (Indicate the effect of each variance by selecting "F* for favourable, unfavourable, and "Nor effect (.e. zero variance) Labout rate variance Labour efficiency variance c. Variable overhead spending and efficiency variances (Indicate the effect of each variance by selecting "F" for favourable. "U" fc unfavourable, and "None" for no effectie, zero variance), Variaose Variable overt spending variance vanance 2-a. Surmare the variances you computed in part (1) by showing the net overall favourable or unfavourable variance for the month Indicate the effect of variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effectie, zero variance).) 2.b. What impact did this figure have on the company's income statement? The will cane De Dout of Gooch Sold to thereby net income by that amount 3. Pick out the two most significant variances you computed in part (1) (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the boa for a wrong answer any boxes ten with a question mark will be automatically graded as incorrect) 7 Materials price variance Materials quantity variance Labout rate variance Variable overhead efficiency variance wwble overhead spending variance Labour ethicency vanance 4. Compute the feed overhead cost variances indicate the effect of varionce by selecting "F* for favourable. "U" for unfavourable, and "None" for no effect (... zero variance)) Fred vehead dot varande Ford Overhead volume