Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The standard cost for one pool is as follows: Standard Quantity or standard Hours Standard Price or Rate Cost Direct materials 1.48 kilograms $5.08 per kilogram $ 7.08 Direct labour 8. 83 hours $6.08 per hour 4.8 Variable manufacturing overhead 8. 50 machine- hours $4.08 per machine-hour 2.88 Total standard cost $13. 88 The plant has been experiencing problems for some time, as is shown by its June income statement when it mode and sold 15,000 pools; the normal volume is 15,150 pools per month. Fixed costs are allocated using machine-hours. Flexible Budgeted Actual Sales (15, 808 pools) $ 458, 808 Less: Variable expenses: Variable cost of goods sold* 287, 808 866" BAZ Variable selling expenses 28, 808 Total variable expenses 227, BBB 229,998 Contribution margin 223, 838 220, 818 Less: Fixed expenses: Manufacturing overhead 180, 838 selling and administrative 84, BBB 84,080 Total fixed expenses 184, 838 184,080 Net income $ 39, 808 $ 36,018 *Contains direct materials, direct labour, and variable manufacturing overhead. Janet Dunn, the general manager of the Westwood Plant, wants to get things under control. She needs information about the operations in June since the income statement signalled that the problem could be due to the variable cost of goods sold. Dunn learns the following about operations and costs in June: B. 31,600 kilograms of materials were purchased at a cost of $4.00 per kilogram. b. 24,600 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored.) c. 11,800 direct labour-hours were worked at a cost of $8 per hour. d. Variable manufacturing overhead cost totelling $24190 for the month was incurred. 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 s monthly basis. Required: 1. Compute the following variances for June: a. Direct materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect (Le., zero variance).) Material price variance Material quantity varianceb. Direct labour rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (Le.. zero variance).) Labour rale variance Labour efficiency vanance c. Variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (le., zero variance).) Variable overhead spending variance Variable overhead efficiency vanance 2-a. Summarize the variances you computed in part (1) by showing the net overall favourable or unfavourable variance for the month. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (1.e., zero variance).) Net variance2-b. What impact did this figure have on the company's income statement? This will cause the Cost of Goods Sold to thereby net income by that amount. 3. Pick out the two most significant variances you computed in port (1). (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as Incorrect.) ? Materials price varlance 7 Materials quantity variance 7 Labour rate varlance 7 variable overhead efficiency variance 7 variable overhead spending varlance 7 Labour efficiency variance 4. Compute the fixed overheed cost variances. (Indicate the effect of variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect (Le., zero variance).) Fixed overhead budget variance Fixed overhead volume variance 5. This part of the question is not part of your Connect assignment