Miller Toy Company manufactures a plastic swimming pool etits Westwood Plant. The plant has been experiencing problems as shown by its June contribution formet income statement below: Flexible Budget Actual 3 203,eee $ 200.eu Sales (5,680 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 (los) 54,180 16. 70.100 129,988 67.330 16.ee 83.330 116,670 52,280 52.se 67.83 67,200 119.000 119,00 $10.9005 (2,330 *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 hos concluded thet the major problem lies in the veriable 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 3.2 pounds 8.5 hours 8.4 hours Standard Price or Rate 5 2.20 per pound $ 6.20 per hour $ 1.78 per hour Standard Cost $ 7.84 3.10 8.68 $ 18.82 *Based on machine-hours. During June the plant produced 5,000 pools and incurred the following costs: a. Purchased 21.000 pounds of materials at a cost of $2.65 per pound. b. Used 15.800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c Worked 3.100 direct labor-hours at a cost of $5.90 per hour. c. incurred variable manufacturing overhead cost totaling $4.830 for the month. A total of 2.300 machine-hours was recorded. 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: 9. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overnesc rete and efficiency veriences. 2. Summarize the variences that you computed in (1) above by showing the net overall fevoreble or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 1a. Compute 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 (ie., zero variance). Input all amounts as positive values.) Show less