Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please provide answer in the chart format Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems

please provide answer in the chart format image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Miller 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 Budget Actual Sales (6,000 pools) $ 225,000 $ 225,000 Variable expenses: Variable cost of goods sold 73,620 38,700 Variable selling expenses 17.000 12.000 Total variable expenses 90,620 105,700 Contribution margin 134,380 119,300 Fixed expenses: Manufacturing overhead 53,000 53,000 Selling and administrative 68,000 65,000 Total fixed expenses 121,000 121,000 $ 13,380 $ (1,700) Net operating income (loss) *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 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 Standard Quantity or Standard Hours Standard Price or Rate Cost Direct materials 3.3 pounds $ 2.30 per pound $ 7.59 Direct labor 0.5 hours $ 6.30 per hour Variable manufacturing overhead 2.5 hours $ 1.80 per hour Total standard cost per unit $ 12.2 3.78 0.90 Janet Dunn, who has just been appointed general manager of the Westwood Plant, 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 Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 3.) pounds 0.6 hours 0.5 hours Standard Price or Rate 5 2.30 per pound $ 6.30 per hour $ 1.80 per hour Standard Cost $ 2.59 3.28 08.30 $ 12.2) Based on machine-hours. During June, the plant produced 6,000 pools and incurred the following costs: a. Purchased 24.800 pounds of materials at a cost of $275 per pound. b. Used 19,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 4,200 direct labor-hours at a cost of $6.00 per hour d. Incurred variable manufacturing overhead cost totaling $7260 for the month. A total of 3.300 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. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month 7 Next Jy We uvela lavorable or unfavorable variance for the month 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 1c. 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 for favorable for unfavorable, and "None" for no effect (ezero variance). Input all amounts as positive values.) Show less 1a Material price variance 1a Material quantity variance 1b Labor tale variance 1b. Labor efficiency variance 1c Variable overhead rate variance 1c Variable overhead efficiency variance Required 2 > Next Het a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month Complete this question by entering your answers in the tabs below. Required 1 Required 2 Summarize the variances that you computed In (1) above 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 "None" for no effect zero variance). Input all amounts as positive values.) Nel variance Red

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ACCOUNTING JOB QUESTIONS AND ANSWERS Trainee Accountants Handbook

Authors: Sterling Libs FCCA

1st Edition

1911037129, 978-1911037125

More Books

Students also viewed these Accounting questions

Question

9. Understand the phenomenon of code switching and interlanguage.

Answered: 1 week ago