Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The standard cost for onepool is as follows:Direct materialsVariahle nanufactur ing overheadTotal standard costSales $(15,330$ pools$)$Less: Variable expenses:Variable l s sO$10$Total variable expensesContribution marginMLutactuctng overheadSelling and administrativeTotal fixed expensesNet incomeThe plant has been experiencing problems for some time, as is shown by its June income statement when it$5,330$ poos; the normal volume is $15,480$ pools per month. Fixed costs are allocated usingmachine$-$hoursStandard Quantity$\mathrm{.}50$ kilograms$40$ machine$-$hoursRequired:Flexible$1.$ Compute the folowing variances for June:Material price variance$183,960$Material quantity variance$133,128$B$6,20$C$219,328$$ $70,272$Labour rate varianceLabour efficiency varianceStandard Price or Rate$$4\mathrm{.}00$ per kilogramS $3\mathrm{.}220$$$3\mathrm{.}00$ per machine$-$hour$ $(15220)204.40227\mathrm{.}730289,600$"Contains direct materials, direct labour, and variable manufacturing overhead.Actual$$494\mathrm{.}00020,29$oa$.32,200$ kilograms of materials were purchased at a cost of $$3\mathrm{.}90$ per kilogram$\mathrm{.}266,270$Janet Dunn, the general manager of the Westwood Plant, wants to get things under control. She needsinformation about the operations in June since the income statement signalled that the problem could be dueto the variable cost of goods sold. Dunn learns the following about operations and costs in June:C$.12,020$ direct labour$-$hours were worked at a cOst of $57$ per hour$\mathrm{.}133,128$S $1,464$F$86,200$b$.26,800$ kilograms of materials were used in production. $($Finished goods and work$-$in$-$process inventoriesare insignificant and can be ignored.$)$It is the company's policy to close all variances to cost of goods sold on a monthly basis$\mathrm{.}219,328$$ $(12,020)$ U$ $46,942$machine$-$hours wns rorededtog si$8,84$O Tor the month was incurred, A total of $5$ onoCheck my worka. Direct materials price and quantity variances. $($lndicate the effect of each variance by selecting $"$F$"$ forfavourable, r unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$).)$StandardCost$ $6\mathrm{.}001\mathrm{.}20$$$12\mathrm{.}00$b$.$ Direct labour rate and efficiency variances. $($Indicate the effect of each variance by selecting $"$F$"$ forfavourable, $"$U$"$ for unfavourable, and "None" for no effect $($l$.$e$.,$ zero variance$).)$ances$2-$a$.$ Summarize the variances you computed in part $(1)$ by showing the net overall favourable or unfavourablevariance for the month. $($lndicate the effect of variance by selecting $"$F$"$ for favourable, $"$U$"$ forunfavourable, and "Noneno effect $($Le$.,$ zero variance$)-)$Net variance$2-$b$.$ What impact did this figure have on the company's income statement?This will cause the Cost of Goods Sold to$?$ Materials price variance$3.$ Pick out the two most significant variances you computed in part $(1).($You may select more than oneanswer. Single click the box with the question mark to produce a check mark for a correct answer anddouble click the box with the question mark to empty the box for a wrong answer. Any boxes left with aquestion mark will be automatically graded as incorrect.$)?$ Materials quantity variance? Labour rate variance? Variable overhead efficiency variance$2$ Variable overhead spending variance? Labour efficiency varianceFxed overhead budget variance,thereby decreasing$4.$ Compute the fxed overhead cost variances. $($lndicate the effect of variance by selecting $"$F$"$ forfavourable, $"$U$"$ for unfavourable, and "None" for no effect $($i$.$e$.,$ zero variance$))$Fixed overhe ad volume variance$$ PrevNone$5.$ This part of the question is not part of your Connect assignment.net income by that amount$\mathrm{.}3$ of $4$Next