Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant is experiencing problems as shown by its June contribution format income statement below:

Flexible Budget Actual

Sales $(8,000$ pools$)$ $ $290,000$ $ $290,000$

Variable expenses:

Variable cost of goods sold$*104,400124,770$

Variable selling expenses $20,00020,000$

Total variable expenses $124,400144,770$

Contribution margin $165,600145,230$

Fixed expenses:

Manufacturing overhead $68,00068,000$

Selling and administrative $86,00086,000$

Total fixed expenses $154,000154,000$

Net operating income $($loss$)$ $ $11,600$ $ $(8,770)$

$*$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 concluded 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 $3\mathrm{.}6$ pounds $ $2\mathrm{.}20$ per pound $ $7\mathrm{.}92$

Direct labor $0\mathrm{.}5$ hours $ $7\mathrm{.}70$ per hour $3\mathrm{.}85$

Variable manufacturing overhead $0\mathrm{.}4$ hours$*$ $ $3\mathrm{.}20$ per hour $1\mathrm{.}28$

Total standard cost per unit $ $13\mathrm{.}05$

$*$Based on machine$-$hours.

During June, the plant produced $8,000$ pools and incurred the following costs:

Purchased $33,800$ pounds of materials at a cost of $$2\mathrm{.}65$ per pound.

Used $28,600$ pounds of materials in production. $($Finished goods and work in process inventories are insignificant and can be ignored.$)$

Worked $4,600$ direct labor$-$hours at a cost of $$7\mathrm{.}40$ per hour.

Incurred variable manufacturing overhead cost totaling $$12,600$ for the month. A total of $3,500$ machine$-$hours was recorded.

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

Required:

Compute the following variances for June:

Materials price and quantity variances.

Labor rate and efficiency variances.

Variable overhead rate and efficiency variances.

Summarize the variances you computed in requirement $1$ by showing the net overall favorable or unfavorable variance for the month.