Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The standard cost for one pool is as follows: Standard Quantity or Hours Standard Cost $ 5.20 1.30 kilograms 0.90 hours 4.50 1.20 0.40 machine-hours $10.90 Direct materials Direct labour Variable manufacturing overhead Total standard cost The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 14,900 pools; the normal volume is 15,050 pools per month. Fixed costs are allocated using machine-hours. Sales (14,900 pools) Less: Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Less: Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net income Flexible Budgeted $ 447,000 162,410 19,900 182,310 264,690 Standard Price or Rate $4.00 per kilogram $5.00 per hour $3.00 per machine-hour 129,000 83,440 212,440 $ 52,250 Actual $ 447,000 202,164 19,900 222,064 224,936 129,000 83,440 212,440 $ 12,496 *Contains direct materials, direct labour, and variable manufacturing overhead. Janet Dunn, the general manager of the Westwood Plant, wants to get things under control. She needs information about the operations in June since the income statement signalled that the problem could be due to the variable cost of goods sold. Dunn learns the following about operations and costs in June: a. 30,900 kilograms of materials were purchased at a cost of $3.90 per kilogram. b. 24,500 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored.) c. 11,800 direct labour-hours were worked at a cost of $7 per hour. d. Variable manufacturing overhead cost totalling $24,654 for the month was incurred. A total of 5,870 machine-hours was recorded.

2-b. What impact did this figure have on the company's income statement? 4. Compute the fixed overhead cost variances. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 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. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) b. Direct labour rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero variance).) c. Variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting " F " for favourable, "U" fo unfavourable, and "None" for no effect (L.e, zero variance).) 2-a. Summarize the variances you computed in part (1) by showing the net overail favourable or unfavourable variance for the month. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (I.e., zero variance).) Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The standard cost for one pool is as follows: The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 14,900 pools; the normal volume is 15.050 pools per month. Fixed costs are allocated using machine hours. "Contains direct materials, direct labour, and vanable manufacturing overhead. Janet Dunn, the general manoger of the Westwood Plant, wants to ger things under control She needs information about the operations in June since the income statement signalled that the problem could be due to the variable cost of goods soid. Dunn learns the following about operations and costs in June a. 30,900 kilograms of materials were putchased at a cost of $3.90 per kilogram b. 24.500 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored) c. 11,800 direct bobour-hours were worked at a cost of $7 per hour. d. Variable manufacturing overhead cost totalling $24,654 for the month was incurred. A total of $5.870 machine-hours was recorded