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 $(5,000$ pools$)$ $ $200,000$ $ $200,000$

Variable expenses:

Variable cost of goods sold$*54,10067,330$

Variable selling expenses $16,00016,000$

Total variable expenses $70,10083,330$

Contribution margin $129,900116,670$

Fixed expenses:

Manufacturing overhead $52,00052,000$

Selling and administrative $67,00067,000$

Total fixed expenses $119,000119,000$

Net operating income $($loss$)$ $ $10,900$ $ $(2,330)$

$*$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 Standard Price or Rate Standard Cost

Direct materials $3\mathrm{.}2$ pounds $ $2\mathrm{.}20$ per pound $ $7\mathrm{.}04$

Direct labor $0\mathrm{.}5$ hours $ $6\mathrm{.}20$ per hour $3\mathrm{.}10$

Variable manufacturing overhead $0\mathrm{.}4$ hours$*$ $ $1\mathrm{.}70$ per hour $0\mathrm{.}68$

Total standard cost per unit $ $10\mathrm{.}82$

$*$Based on machine$-$hours.

During June, the plant produced $5,000$ pools and incurred the following costs:

Purchased $21,000$ pounds of materials at a cost of $$2\mathrm{.}65$ per pound.

Used $15,800$ pounds of materials in production. $($Finished goods and work in process inventories are insignificant and can be ignored.$)$

Worked $3,100$ direct labor$-$hours at a cost of $$5\mathrm{.}90$ per hour.

Incurred variable manufacturing overhead cost totaling $$4,830$ for the month. A total of $2,300$ 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 efficiency variances.

$2.$ Summarize the variances that you computed in requirement $1$ by showing the net overall favorable or unfavorable variance for the month.