Name: Student No: QUESTION 5 (24 Marks) Santa Toy Industries Inc. manufactures a plastic swimming pool at its North Pole Plant 1. The standard cost for one pool is as follows: dard Quantity or Hours 1.5 kilograms 0.8 hours Standard Price or Rate Standar Direct Materials Direct Labour Variable Manufacturing Overhead Total Standard cost $4 per kilogram $6.00 0.4 machine hours $6 per hour $3 per machine hour $4.80 S120 $12.00 The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 15,000 pools; the normal volume is 15,150 pools per month. Fixed costs are allocated using machine-hours. $450,000 $450,000 Sales (15,000 pools) Less Variable Expenses: $180,000 $196,290 Variable cost of goods sold Variable selling expenses Total Variable expenses Contribution Margin Less Fixed Expenses: 20,000 $200,000 $250.000 $216,290 $233210 $130,290 S84.000 $130,290 5 84.000 $214,290 Manufacturing overhead Selling and administrative Total Fixed Expenses Net Income $214,290 $19,420 Contains direct materials, direct labour, and variable manufacturing overhead Source: Adapted from Brewer et al, latzeductian.to. Managerial Accountina 3-Sth Edition