please answer required 1 and 2
Milier 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. "Contains direct materials, direct labor, and variable manufacturing overhead. Janet Dunn, who has just been appointed general manager of the Westwood Piant, has been given instructions to "get things under 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: "Based on machine-hours: During June, the plant produced 7,000 pools and incurred the tollowing costs: a. Purchased 28.800 pounds of malerints at a cost of $2.85 per pound b. Used 23,600 poinds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored c. Worked 2700 direct laboe hours at a cost of $6.10 per hour d. Incurred varisble manufacturing owerhesd cost totaling $10,350 for the month. A total of 4,500 machine-hours was iecerded. It is the company/s policy to close all variances to cost of goods sold on a monthly basis. Mequired: 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. b. Labor rate and eficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or unfavorable va for the month. Complete this question by entering your answers in the tabs below. 1a. Compute the foliowing variances for June, materials price and quantity variances. 16. Compute the following variances for June, labor rate and efficiency variances. 1c. Compute the following variances for June, varlable overbead rate and efficiency variances. (Do not round your intermediate calculations, Indicate the effect of each varlance by selecting "F" for favorable, "U* for unfavorable, and "None" for fo effect (i.e., zero variance). Input all amounts as positive values.) b. Used 23,600 pounds of materials in production. (Finished goods and work in process inventories are insignifican be ignored.) c. Worked 2,700 direct labor-hours at a cost of $6.10 per hour. d. Incurred variable manufacturing overhead cost totaling $10,350 for the month. A total of 4,500 machine-hours wa recorded. It is the company's policy to close all varlances to cost of goods sold on a monthly basis. Required: 1. Compute the following variances for June: a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the varitinces that you computed in requirement 1 by showing the net overall favorable or unfavorable for the month. Complete this question by entering your answers in the tabs below. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or unfavorable variance for the month. (indicates thet you computed in requirement 1 by showing the net overall favorable or untavorable variance effect (l.e, zero variance). Input all amounts as postive values.)
