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: 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 c. Worked 2,000 direct labor-hours at a cost of $5.70 per hour. d. Incurred variable manufacturing overhead cost totaling $1,710 for the month. A total of 900 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. 1a. Compute the followin variances. 1b. Compute the followin! variances. 1c. Compute the followins efficiency variances. (Do not round your intern variance by selecting "F" no effect (i.e., zero variar ing variances for June, mat ing variances for June, labo ing variances for June, varii rmediate calculations. Indi =" for favorable, "U" for unf; iance). Input all amounts a! computed in (1) above by showing the net overall favorable or unfavorable variance for the month. Complete this questic below. Summarize the variance: net overall favorable or 1 effect of each variance b and "None" for no effect positive value.) 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: 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 c. Worked 2,000 direct labor-hours at a cost of $5.70 per hour. d. Incurred variable manufacturing overhead cost totaling $1,710 for the month. A total of 900 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. 1a. Compute the followin variances. 1b. Compute the followin! variances. 1c. Compute the followins efficiency variances. (Do not round your intern variance by selecting "F" no effect (i.e., zero variar ing variances for June, mat ing variances for June, labo ing variances for June, varii rmediate calculations. Indi =" for favorable, "U" for unf; iance). Input all amounts a! computed in (1) above by showing the net overall favorable or unfavorable variance for the month. Complete this questic below. Summarize the variance: net overall favorable or 1 effect of each variance b and "None" for no effect positive value.)
