Mller 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 sales (7,eee pools) variable expenses: 255,800 255,eee variable cost of goods sold 85,400 184,59e 15,000 180.48e 119,59e 154,600 135,41e 15,888 Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead 64,8e0 64,0ee 79,800 143,e0 143,eee $ 11,6ee (7,590) selling and administrative 79.800 Total fixed expenses Net operating income (loss) Contains direct materials, direct labor, and varlable manufacturing overhead. Janet Dunn, who has Just been appolnted general manager of the Westwood Plant, has been gliven Instructions to "get things under control. Upon reviewing the plant's Income statement, Ms. Dunn has concluded that the major problem lles In the varlable cost of goods sold. She has been provided with the following standard cost per swimming pool: Standard Quantity or standard Price or Rate Standard Cost Hours Direct materials Direct labor variable manufacturing overhead Total standard cost per unit 4.e pounds 0.3 hours 0.2 hours $ 2.40 per pound $ 7.e0 per hour $ 9.60 2.1e s 2.5e per hour8.58 e.se $ 12.20 Based on machine-hours During June, the plant produced 7,000 pools and Incurred the following costs a. Purchased 33,000 pounds of materials at a cost of $2.85 per pound. b. Used 27,800 pounds of materials In production. (Finished goods and work In process Inventories are Insignificant and can be gnored.) c. Worked 2,700 direct labor-hours at a cost of $6.70 per hour d. Incurred varlable manufacturing overhead cost totaling $4,930 for the month. A total of 1,700 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 varlances for June a. Materials price and quantity variances. b. Labor rate and efficiency varlances C. Variable overhead rate and efficlency varlances. 2. Summarize the varlances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month