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 (3,880 pools) Variable expenses $ 175,80 175,898 Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 24,308 58,318 1e,808 68,318 148,78e 186,698 1e,808 34,388 Manufacturing overhead 58,88 5e,8e 65,8e8 115,808 115,888 25,788 (8, 318) Selling and administrative 65,8e8 Total fixed expenses Net operating income (loss) 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 Standard Price Standard or Rate Cost Hours Direct materials 3.8 pounds 0.3 hours 0.2 hours s 2.88 per pound $6.88 per hour 1.58 per hour $ 6.80 1.88 0.30 $ 8.18 Direct labor Variable manufacturing overheac Total standard cost per unit Based on machine-hours. During June, the plant produced 3,000 pools and incurred the following costs: a. Purchased 23,000 pounds of materials at a cost of $3.20 per pound. b. Used 8,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) 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. Requlred 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