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 Sales (6,000 pools) Variable expenses: s 273,000 $273,000 ariable cost of goods sold 83,460 102,050 24.000 24,000 126,050 Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 107,460 Manufacturing overhead 65,000 65,000 90.000 90.00 Selling and administrative Total fixed expenses 155, 000 $10,540 $ (8, 050) 155,000 Net operating income (loss) Contains direct materials, direct labor, and varlable 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 varlable cost of goods sold. She has been provided with the following standard cost per swimming pool: Standard Quantity or Standard Price Standard or Rate Cost Hours Direct materials 4.0 pounds 2.60 per pound 0.3 hours 10.40 2.43 1.08 Direct labor 8.10 per hour Variable manufacturing overhead 0.3 hours 3.60 per hour Total standard cost per unit Based on machine-hours. During June, the plant produced 6,000 pools and incurred the following costs: a. Purchased 29,000 pounds of materlals at a cost of $3.05 per pound. $13.91 b. Used 23,800 pounds of materials in production. (Finished goods and work in process inventories are insignlficant and can be gnored.) C. Worked 2,400 direct labor-hours at a cost of $7.80 per hour. d. Incurred variable manufacturing overhead cost totaling $8,400 for the month. A total of 2,100 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 varlances for June: a. Materials price and quantity varlances. b. Labor rate and efficiency varlances. c. Varlable overhead rate and efficiency variances. 2. Summarize the varlances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month