Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The standard cost for one pool is as follows: cost of goods sold. Dunn learns the following about operations and costs in June: a. 30,000 kilograms of materials were purchased at a cost of $3.90 per kilogram. b. 24,600 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and cen be ignored.) c. 11,800 direct labour-hours were worked at a cost of $7 per hour. d. Variable manufacturing overhead cost totalling $18,290 for the month was incurred. 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. Direct materials price and quantity variances. b. Direct labour rate and efficiency varianees. c. Variable overhead spending and efficiency variances. computations 3. Pick out the two most significant variances sou computed in part (1). Explain to Dunn the possible causes of these variances. 4. Compute the fixed overhead cost variances and explain their significance to Dunn. 5. Do you agree that the budget shown above is the proper comparison for the actual results for June, or do you think that the correct budget should be based on a volume of 15,150 pools? Explain