Miller Toy Company manufactures a plastic swimming pool at Its Westwood Plant. The plant has been experiencing problems as show by its June contribution format Income statement below. Flexible Budget Actual $ 275,000 $275,000 Sales (4,08 pools) Variable expenses: Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 74,720 27,000 101,720 173,286 99, e4e 27. eee 117,640 157,960 68,000 68, eee 93,eee 93, eee 161, eee 161, eee 12, 280 $ (3,648) *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: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 4.3 pounds 2.6 hours 2.3 hours Standard Price or Rate $ 2.90 per pound $ 8.40 per hour $ 3.90 per hour Standard Cost $ 12.47 5.4 1.17 $ 18.68 "Based on machine-hours. During June, the plant produced 4.000 pools and incurred the following costs: a. Purchased 22,200 pounds of materials at a cost of $3.35 per pound. b. Used 17.000 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be Ignored.) c. Worked 3.000 direct labor-hours at a cost of $8.10 per hour. d. Incurred variable manufacturing overhead cost totaling $6.450 for the month. A total of 1.500 machine-hours was recorded. It is the comnany's policy to close all variances to cost of anods sold on a monthly basis 1a. Compute the following variances for June, materials price and quantity variances. 1b. Compute the following variances for June, labor rate and efficiency variances. ic. 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 variance Labor efficiency variance 10. Variable overhead rate variance Variable overhead efficiency variance 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 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.) Net variance De rot round you Forsvorsole Miller Toy Company manufactures a plastic swimming pool arms Westwood Plant. The plant has been experiencing problems as shown by its Jure contribution format incore statement below Flexible Actual Budget Variables: Varanlence of gamis 74,722 2,02 Yariable selling expenses 27.000 27.00 Total variable 113 113,05 Contbution margin 173,29157 Pixel expenses: Maracturing overed bs,80 . Sentrative Total til 161,20 Net Operating Incore (loss) $ 12.20 $ 13,046 Comains direct materials, direct labor, and variable manufacturing overhead. Janet Dunr, who has just been appointed general manager of the Westwood Plant, has been given instructions to "ger things under control." Upon reviewing the plants momo catment, Mc Durn has concluded that the major problem lies in the vanable cost of goods sold. She has been provided with the folowing standard cost per swimming pool Standard Standard Price Standard Quantity or Hours up Rate Cost Directorials $ 2.0 pound $ 12.45 Direct labor 0.6 hours 5 8.46 per hour 5.04 Wariable naturang overhead 1.12 Total Sant Costruit $18.68 Based on machine hours During Junio, the plan produced 4.000 pool and Incurred the following Co.L. a. Purchased 22.200 pounds of materials at a cost of $3.35 per pound. b. Used 17.000 pounds of materials in production Finished goods and work in process inventories are ins gnificant and can be gnores c. Worced 3.000 direc: Isbor-hours at a cost of $2.10 per hour. c. incurred variable manufacturing oxerhead cost totalno 56.450 for the month A ictal of 1.500 machine hour was recorded. In the links allerleme on left on melk 1s. Compute the following vriences for lune, materias price and quantity varienses 15. Compute the following verances for June, laborate and eficiency variances 1c Compute the following verances for une verible overhead rete and efficiency veriences Indicate the elect of each variance selectie u favorable and "None' for no effect ezer verance) Input all amounts es positive veluesi la serta prissaare Marial quand vallanca 16 Labor re variance Labor store van 10 Vanale overheasta vanane Variable overheaseny varenga Summarize the variances that you computed in (1) above by showing the net oversl fevrable or unfavorable variance for the month. (Indicate the effect of each verience by selecting 'F' for favorable. "Ufor unexorable, and one for no effectie tero venience .nput all amount ! pcitive values Ne Net variere