Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant is experiencing problems as shown by its June contribution format income statement below: Sales (6,000 pools) Flexible Budget $273,000 Actual $273,000 Variable expenses: Variable cost of goods sold. 83,460 102,050 Variable selling expenses 24,000 24,000 Total variable expenses 107,460 126,050 Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative 165,540 146,950 65,000 65,000 90,000 Total fixed expenses Net operating income (loss) 155,000 $ 10,540 90,000 155,000 $ (8,050) *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 concluded 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 Standard Price or Hours 4.0 pounds 0.3 hours Rate Standard Cost Direct materials Direct labor $ 2.60 per pound $ 8.10 per hour $ 10.40 2.43 Variable manufacturing erhead 0.3 hours* $ 3.60 per hour 1.08 Total standard cost per unit $13.91 'Based on machine-hours. During June, the plant produced 6,000 pools and incurred the following costs: a. Purchased 29,000 pounds of materials at a cost of $3.05 per pound. b. Used 23,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 2,400 direct labor-hours at a cost of $7.80 per hour. d. Incurred variable manufacturing overhead cost totaling $8,400 for the month. A total of 2,100 machine- hours was recorded. t is the company's policy to close all variances to cost of goods sold on a monthly basis. Required: Compute the following variances for June: a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances.