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 $ 265.000 $265,000 Sales (6,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 95,580 112,700 14,000 109,580 126,700 155,420 138,300 14,000 Manufacturing overhead 63,000 63,000 78,000 141, 000 141, 000 $ 14,420 (2,700) Selling and administrative 78,000 Total fixed expenses 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 Standard Price Standard or Rate 2.30 per pound 2.40 per hour Cost Hours Direct materials .9 pounds 0.8 hours 8.97 5.52 1.44 Direct labor $ 6.90 per hour Variable manufacturing overhead 0.6 hours $15.93 Total standard cost per unit *Based on machine-hours During June, the plant produced 6,000 pools and incurred the following costs a. 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 manufacturing 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 variances to cost of goods sold on a monthly basis Requirec 1. Compute the following variances for June a. 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 1) 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 1Required 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 variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance Required 1 Required 2 2. Summarize the variances that you computed in (1) 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 Required 2 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 variace). Input all amounts as positive values.) Net variance