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Problem 9-18 (Algo) Comprehensive 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 problems as shown. by its June contribution format income statement below: Flexible Budget $225,000 Sales (6,000 pools) Variable expenses: Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead i Selling and administrative Total fixed expenses Net operating income (loss) $(1,700) *Contains direct materials, direct labor, and variable manufacturing overhead. Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit "Based on machine-hours. 73,620 17,000 90,620 134,380 53,000 68,000 121,000 $ 13,380 Actual $ 225,000 Standard Quantity or Hours 3.3 pounds 0.6 hours 0.5 hours 88,700 17,000 105,700 119,300 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: 53,000 68,000 121,000 Standard Price or Rate $ 2.30 per pound $ 6.30 per hour $ 1.80 per hour Standard 1 Cost $7.59 3.78 0.90 $ 1.27 During June the plant produced 6,000 pools and incurred the following costs: a. Purchased 24,800 pounds of materials at a cost of $2.75 per pound. b. Used 19,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) Windon 300 t nhne het off on nehe Print 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 "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) 1a. Material price variance 1a. Material quantity variance 16. Labor rate variance 1b. Labor efficiency variance 1c. Variable overhead rate variance 1c. Variable overhead efficiency variance Required 1 Required 2 > Show less A Complete this question by entering your answers in the tabs below. Required 1 Required 2 Showing the net overall favorable or unfavorable variance for the month. 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 (i.e., zero variance). Input the amount as positive value.) Net variance