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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

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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: "Contains direct materials, direct labor, and variable manufacturing ovethead. 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: "Based on machine-hours. During June, the plant produced 3,000 pools and incurred the following costs: a. Purchased 15,800 pounds of materials at a cost of $2.45 per pound. b. Used 10,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 2.100 direct labor-hours at a cost of $6.30 per hour. d. Incurred variable manufacturing overhead cost totaling $3,000 for the month. A total of 1,200 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 (1) above by showing the net overall favorable or unfavorable variance for the mont Complete this question by entering your answers in the tabs below. 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. (Oo not round your intermediate calculations. Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and 'None' for no effect (i.e, zero variance), Input all amounts as positive values.) \begin{tabular}{|c|l|l|} \hline 1a. & Material price variance \\ \hline & Material quantity variance \\ \hline 1b. & Labor rate variance \\ \hline & Labor efficiency variance \\ \hline 1c. & Variable overhead rate variance \\ \hline & Variable overhead efficiency variance \\ \hline \end{tabular}

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