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 Budge Actual $675,000 $675,000 Sales (15,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 435,000 461,890 20,000 455, 000 481,890 220,000 193,110 20,000 Manufacturing overhead 130, 000 130,000 84,000 214,000 214, 000 Selling and administrative 84,000 Total fixed expenses Net operating income (loss) $6,000 (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 or Hours .0 pounds Standard Price Standard or Rate Cost Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit 15.00 12.80 5.00 per pound 0.8 hours $16.00 per hour 0.4 hours*3.00 per hour 1.20 $29.00 Based on machine-hours