Pehensive Variance Analysis [LO9-4, LO9-5, LO9-6] Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problem by its June contribution format income statement below: Flexible Budget Actual $ 255,000 $255,000 Soles (7,808 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 (loss) 85,400 15,000 100,400 154,600 104,590 15,000 119,590 135,410 64,000 64,000 79,000 29,000 143,000 143,000 $ 11,600 $ (7,590) *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 und control." Upon reviewing the plant's income statement. Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Quantity or Hours 4.0 pounds 8.3 hours 0.2 hours Standard Price or Rate $ 2.40 per pound $ 7.00 per hour $ 2.50 per hour Standard Cost $9.60 2.10 3.50 $ 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 Ignored.) c. Worked 2700 direct labor-hours at a cost of $670 per hour d. Incurred variable manufacturing overhead cost totaling $4.930 for the month A total of 1700 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 a. Materials price and quantity variances 5. Laborate and efficiency variances Variable overhead rate and efficiency variances 2. Summarize the variances that you computed in above by showing the net overall favoro ble or unfavorable variance for the month 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for th Complete this question by entering your answers in the tabs below. Required 1 Required 2 1a. Compute the 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, "Ufor unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) Show less 1a Material price variance Material quantity variance 1b Laborrate variance Labor officiency variance 1c Variable overhead rate variance Variable overhead efficiency variance 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the mon Complete this question by entering your answers in the tabs below. Required 1 Required 2 Summarize the variances that you computed In (1) acove 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 one for no effect (lie, zero variance). Input the amount as positive value.) Net variance