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: Compute a materials price variance for the plates purchased last month and a materials quantity variance

last month. $($Indicate the effect of each variance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and $"$N

$($i$.$e$.,$ zero variance$).$ Input all amounts as positive values.$)$ For labor cost in the lab, compute a labor rate variance and a labor efficiency variance. $($Indicate the effect of each variance

by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).$ Input all amounts as positive

values.$)$ Compute the variable overhead rate and efficiency variances. $($Indicate the effect of each variance by selecting $"$F$"$ for

favorable, $"$U$"$ for unfavorable, and "None" for no effect $($i$.$e$.,$ zero variance$).$ Input all amounts as positive values.$)$

Flexible Budget Actual

Sales $(15,000$ pools$)$ $ $675,000$ $ $675,000$

Variable expenses:

Variable cost of goods sold$*435,000461,890$

Variable selling expenses $20,00020,000$

Total variable expenses $455,000481,890$

Contribution margin $220,000193,110$

Fixed expenses:

Manufacturing overhead $130,000130,000$

Selling and administrative $84,00084,000$

Total fixed expenses $214,000214,000$

Net operating income $($loss$)$ $ $6,000$ $ $(20,890)$

$*$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:

Standard Quantity or Hours Standard Price or Rate Standard Cost

Direct materials $3\mathrm{.}0$ pounds $ $5\mathrm{.}00$ per pound $ $15\mathrm{.}00$

Direct labor $0\mathrm{.}8$ hours $ $16\mathrm{.}00$ per hour $12\mathrm{.}80$

Variable manufacturing overhead $0\mathrm{.}4$ hours$*$ $ $3\mathrm{.}00$ per hour $1\mathrm{.}20$

Total standard cost per unit $ $29\mathrm{.}00$

$*$Based on machine$-$hours.

During June the plant produced $15,000$ pools and incurred the following costs:

Purchased $60,000$ pounds of materials at a cost of $$4\mathrm{.}95$ per pound.

Used $49,200$ pounds of materials in production. $($Finished goods and work in process inventories are insignificant and can be ignored.$)$

Worked $11,800$ direct labor$-$hours at a cost of $$17\mathrm{.}00$ per hour.

Incurred variable manufacturing overhead cost totaling $$18,290$ for the month. A total of $5,900$ machine$-$hours was recorded.

It is the company$$s policy to close all variances to cost of goods sold on a monthly basis.

Required:

$1.$ 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.

$2.$ Summarize the variances that you computed in $(1)$ above by showing the net overall favorable or unfavorable variance for the month.