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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 Flexible Budget Actual Sales (15,000 pools) Variable expenses 675,000 S 675,000 35,000 461,890 20,000 455,000 481,890 220,000193,110 Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 20,000 30,000 3,000 84,000 214,000 214,000 Manufacturing overhead 84,000 Selling and administrative Total fixed expenses Net operating income (loss) $ 6,000 S (20,890) 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 Standard Price or Rate Standard or Hours 3.0 pounds 0.8 hours 0.4 hours Cost S 5.00 per pound S 16.00 per hour S 3.00 per hour $15.00 12.80 1.20 Direct materials Direct labor Variable manufacturing overhead $ 29.00 Total standard cost per unit Based on machine-hours. During June the plant produced 15,000 pools and incurred the following costs a. Purchased 60,000 pounds of materials at a cost of $4.95 per pound. b. Used 49,200 pounds of materials in production. Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 11,800 direct labor-hours at a cost of $17.00 per hour. d. Incurred variable manufacturing overhead cost totaling S18,290 for the month. A total of 5,900 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. Ma b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. terials price and quantity varian ces. 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs belovw 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month Complete this question by entering your answers in the tabs below. Required 1 Required 2 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. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Input all amounts as positive values.) Show lessA 1a. Material price variance Material quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance Required1 Required 2> 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. Required 1Required 2 Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. (Indicate the effect of variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input the amount as positive value.) Net variance K Required 1 Required 2

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