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. Sales (5,000 pools) Variable expenses Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin Fixed expenses Manufacturing overhead Selling and administrative Tutal fixed expenses Net operating income (loss) Flexible dget $200,000 Actual 1.200,000 64,500 98,865 17,000 37,000 101,500 115,065 158,500 144,135 65,000 65,000 3,000 83,00 148,000 140,000 $10,500 $ (3,965) "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 Direct materials Direct labor Variable manufacturing Total standard cost per unit "Based on machine-hours Standard Quantity or Standard 3.3 pounds 8.5 hours Standard Price or Rate $2.50 per pound $7.40 per hour $2.50 per hour Cast 3.9.24 5.92 1.74 $10.90 During June, the plant produced 5,000 pools and incumed the following costs a Purchased 21.500 pounds of materials at a cost of $3.25 per pound b. Used 16.300 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be ignored) c Worked 4.600 direct labor hours at a cost of $710 per hour d. Incuned variatile manufacturing overhead cost totaling $10,890 for the month. A total of 3,300 machine-hours was recorded It is the comp