Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as showr by its June contribution format income statement below: "Contains direct materials, direct labor, and varlable 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 varlable cost of goods sold. She has been provided with the following standard cost per swimming pool: "Based on machine hours. During June, the plant produced 8,000 pools ond incurred the following costs: a. Purchased 33,800 pounds of materials at a cost of $2.65 per pound b. Used 28,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be lgnored.) c. Worked 4,600 direct labor-hours at a cost of $7,40 per hour. d. Incurred variable manufacturing overhead cost totaling $12,600 for the month. A total of 3,500 machine-hours was recorded. It is the company's policy to close all variances to cost of goods sold on o monthly basis Required: 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 varionces that you computed in requirement 1 by showing the net overall favorable or unfavorable variance for the Required: 1. Compute the following variances for June: a. Materiais price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficlency variances. 2. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or unfavorable variane month. Complete this question by entering your answers in the tabs below. 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. 1c. Compute the following variances for June, variable overhead rate and efficiency variances. "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance). Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. Summarize the variances that you computed in requirement 1 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.)
