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 (6,000 pools) $ 273,000 $ 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 165,540 146,950 Fixed expenses: Manufacturing overhead 65,000 65,000 Selling and administrative 90,000 90,000 Total fixed expenses 155,000 155,000 Net operating income (loss) $ 10,540 $ (8,050) *Contains direct materials. direct labor, and variable manufacturing overhead. Janet Dunn, who hasjust 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 Standard Hours Standard Price or Rate Cost Direct materials 4.0 pounds $ 2.60 per pound $ 10.40 Direct labor 0.3 hours $ 8.10 per hour 2.43 Variable manufacturing overhead 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: 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 insignicant 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. 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 efciency variances. 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 1a. Compute the following variances for June, materials price and quantity variances. 1b. Compute the following variances for June, labor rate and efficiency variances. 1c. Compute the following variances for June, variable overhead rate and efficiency variances. (Do not round your intermediate calculations. 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.) Show lessA 1a. Material price variance $ 13,050 U 1a. Material quantity variance F 1b. Labor rate variance F 1b. Labor efficiency variance 1c. Variable overhead rate variance C CC 1c. Variable overhead efficiency variance 2A Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input the amount as positive value.)