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 Budget Actual sales (15,000 pools) Variable expenses: $675,000 $675,000 Variable cost of goods sold Variable selling expenses Total variable expenses Contribution nargin Fixed expenses 435,000 461,890 20,000 20,000 455,000 481,890 220,000 193,110 Manufacturing overhead 130,000 130, 000 84,00084,000 214,000 214,000 6,000 $(20,890 Selling and adninistrative Total fixed expenses Net operating income (loss) Contains direct materials, direct labor, and variable manufacturing overhead Janet Dunn, who has just been appointed geteral manager of the Westwood Plant, has been given instructions to "get things under goods sold. She has been provided with the following standard cost per swimming pool: control. Upon reviewing the plant's income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of Standard Quantity orStandard Price Standard Hours or Rate Coat 3.0 pounds 5.00 per pound15.00 12.80 Direot materials Direct labor Variable manufacturing overhead Total standard cost per unit o.8 hours$16.00 per hour o. 4 hours *3.00 per hour-1.20- $ 29.00 Based on machine-hours. During June the plant produced 15,000 pools and incurred the following costs: a. Purchased 60,000 pounds of materials at a cost of $4.95 per pound. b. Used 49,200 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ianored.)