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 Actual Budget $ 225, eee $ 225,888 Sales (3,000 pools) Variable expenses: Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating Income (loss) 44,520 21,099 65,520 159,480 56,975 21 000 77.975 147.025 62, eee 62,000 B7.000 87.000 149,00 149,000 $ 18,480 (1.975) es *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 3.7 pounds 36 hours 5 hours Direct materials Direct labor Variable santacturing overhead Total standard cost per unit Standard Price of Rate $ 2.30 per pound 57.35 per hour $ 3.38 per hour Standard Cest 5. 8.51 4.68 $ 14 34 -Based on machine-hours. During June, the plant produced 3.000 pools and incurred the following costs. 3 Purchased 16,100 pounds of materials at a cost of $2.75 per pound b Used 10.900 pounds of materials in production Finished goods and work in process inventories are insignificant and can be Ignored.) Worked 2.400 orect labor-hours at a cost of $7.50 per hour o incurred variable manufacturing overeed cost totaling 56.660 for the month. A total of 1800 machine hours was recorded 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 vartances. c Variable overhead rate and efficiency vartances. 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: Required 2 la. 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 (... zero variance). Input all amounts as positive values.) Show TSA 1a Material price variance Material quantity variance 1bl Laborrate variance Labor eficiency variance to Variable overhead rate variance Variable overhead eiciency variance U To