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 $265,000 Actual $265,000 Sales (7,000 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) 79,240 19,000 98,240 166,760 97,525 19,000 116,525 148,475 67,000 67,000 85,000 85,000 152,000 152,000 $ 14,760 $ (3,525) *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 3.5 pounds 0.4 hours 0.3 hours* Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Price or Rate $ 2.10 per pound $ 7.60 per hour $ 3.10 per hour Standard Cost $ 7.35 3.04 0.93 $ 11.32 *Based on machine-hours. During June the plant produced 7,000 pools and incurred the following costs: a. Purchased 29,500 pounds of materials at a cost of $2.55 per pound. b. Used 24,300 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 3,400 direct labor-hours at a cost of $7.30 per hour. d. Incurred variable manufacturing overhead cost totaling $8,400 for the month. A total of 2,400 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 month