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 $ 240,000 240,008 Actual Sales (8,008 pools) Variable expenses: Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin fixed expenses: Manufacturing overhead Selling and administrative fotal fixed expenses 94,e00 10,eee 104,000 136,e00 112,478 1e, eee 122,478 117.530 55,eee 78,eee 55, e0e 78,600 125,888 11, eee ( 478 125 e00 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 Piant, has been given instructions to "get things under control Upon reviewing the plant's income statement. Ms. Dunn as 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: Standand Quantity or Hburs S pounds 4 hours hourst Standard Price on Rate Standard cost Dinect natenials DArect labor variable manufacturing overhead Total standard cest perunit S 2.50 per pound S 6.50 per hour $4.00per houn 2 60 S 11.75 Based on machinehous Duing June the plent procuced 8,000 poois and incurnec the foloving costs Purchased 33.000 pounds of materia E at cost of $2.95 pe pounc Puso R PAYDARmeteriels in p9duction iFinished gocds and work noR vencesrn cent.end.can R Workecis8OOlarect bonoureatlceAtief s20perheu CINORHEO MAARmen.fATurAS OHEead cost tota $4560 for the month ARotaoeoimasnieou secrR 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 ovemead rate and efficiency variances 2. Summarize the variances that you computed in (1) above by showling the net overall favorable OF unfavorable varlance for the month