Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant The plant has been experiencing problems shown by its June contribution format inco statement below: Actual Sales (4,000 pools) 210,000 210,000 Variable expenses: Variable cost of goods sold 50,680 63,710 Variable selling expenses 12,000 12,000 Total variable expenses 62,680 75,710 Contribution margin 147,320 134,290 Fixed expenses: Manufacturing overhead 61,000 61,000 Selling and administrative 76,000 76,000 Total fixed expenses 137,000 137,000 Net operating income (loss) 10,320 (2,710) "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 under Upon reviewing the plant's income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. has been provided the following standard oost per swimming pool with Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials $2.10 per pound 7.77 3.7 pounds Direct labor 0.6 hours $6.70 per hour 4,02 Variable manufacturing overhead 0.4 hours $2.20 per hour Total standard cost 12.67