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 Actual Budget 265,0ee Sales (6.0ge popls) 265.080 Variable expenses: Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin 95,588 112.78e 14.080 14.eee 189.58 126.780 155.428 138.30e Fixed expenses: Manufacturing overhead Sclling and adninistrative Total fixed expenses 63,eee 78,eee 141.0ee 63,eee 78.eee 141.0e 14,428 $ (2,78e 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 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 3.9 pounds e.8 hours e.6 hours Standard Price Standard or Rate Cost Direct materials Direct labor Variable manufacturing overhead 2.30 per pound 6.90 per hour $ 2.40 per hour 8.97 5.52 1.44 $ 15.93 Total standard cost per unit Based on machine-hours. During June, the plant produced 6,000 pools and incurred the following costs: . Purchased 28,400 pounds of materials at a cost of $2.75 per pound. b. Used 23,200 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c Worked 5,400 direct labor-hours at a cost of $6.60 per hour. d. Incurred variable manufocturing overhead cost totaling $10,920 for the month. A total of 3,900 machine-hours was recorded. It is the company's policy to close all varisnces to cost of goods sold on a monthly basis. Required: 1. Compute the following variances for June: . Materials price and quantity variances. b. Labor rate and efficiency variances c. Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in ()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 less 1a. Material price variance Material quantity variance- 1b. Labor rate variances Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance