. Pick out the two most significant varlances you computed in part (1). (You may select more than one answer. Single click ie box with the question mark to produce a check mark for a correct answer and double click the box with the uestion mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded 3 incorrect.) Materials price variance Materials quantity variance Labour rate variance Variable overhead efficiency variance 1. Compute the following variances for June: a. Direct materials price and quantity variances. (Indicote the effect of each variance by selecting "F" for fovourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) c. Variable overhead spending and efficiency variances. (Indicate the effect of each vorionce by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 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. 30,100 kilograms of materials were purchased at a cost of $3.90 per kilogram. b. 22,000 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can be ignored.) c. 11,900 direct labour-hours were worked at a cost of $8 per hour. d. Variable manufacturing overhead cost totalling $21,645 for the month was incurred. A total of 5,850 machine-hours was recorded. It is the company's policy to close all variances to cost of goods sold on a monthly basis. -a. Summarize the variances you computed in part (1) by showing the net overall favourable or unfavourable variance for le month. (Indicate the effect of variance by selecting " F " for fovourable, " U " for unfavourable, and "None" for no ffect (i.e., zero variance).) let variance: b. What impact did this figure have on the company's income statement? his will cause the Cost of Goods Sold to thereby net income by that amount ? Variable overhead spending variance ? Labour efficiency variance 4. Compute the fixed overhead cost variances. (Indicate the effect of variance by selecting "F" for fovourable, "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 15,100 pools; the normal volume is 15,250 pools per month. Fixed costs are allocated using machine-hours. "Contains direct materials, direct labour, and variable manufacturing overhead. b. Direct labour rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfovourable, and "None" for no effect (i.e., zero variance).)
