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. Sales (6,000 pools) Variable expenses: Variable cost of goods solde Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) Flexible Budget Actual $240,000 $240,000 57,900 74,210 18,000 18,000 75,980 92,210 164, 100 147,790 66,000 66,000 84,000 84,000 150,000 150,000 $ 14,188 $ (2,210) *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 3.4 pounds 0.3 hours 8.2 hours Standard Price or Rate $ 2.00 per pound $ 7.50 per hour $ 3.00 per hour Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Cost $ 6.80 2.25 8.60 $ 9.65 Based on machine-hours. During June, the plant produced 6,000 pools and incurred the following costs: a. Purchased 25 400 pounds of materials at a cost of $2.45 per pound b. Used 20,200 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be Innred 7 SHA Next 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 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 (le, zero variance). Input all amounts as positive values.) Show less 1. Motorial price variance Material quantity variance 15. Laborato variante Labor efficiency variance 1o. Variable overhead rate variance Variable overhead officiency variance > Required 2