Problem $10-15($Algo$)$ Comprehenslve Varlance AnalysIs $[$LO$10-1,$ LO$10-2,$ LO$10-3]$

Miler Toy Compsny msnufactures oplastic awimming pool at its Wiestwood Plant. The plant is experiencing problems sa shown by its

June contrbution format income stasement below:

$*$Contains direct materisls, direct labor, snd variable manufacturing overhesd.

Jonet Dunn, who has just been oppointed general mensger of the Westwood Plant, has been given Instructiona to "get thing: under

contral." Upon reviewing the plant's income statement, Ma$.$ Dunn concluded the msjor problem lies In the variable cost of goods sold.

She has been prowided with the fol owing standsrd cost per swimming pool:

rgesed on mschine$-$hours.

During June, the plant produced $6,000$ pools and incurred the following costs:

Purchased $29,400$ pounds of materials at $s$ cost of $$275$ per pound.

b$.$ Used $23,200$ pounds of materisla in production. $($Finlshed goods and wark in process Inventories are insignlficant and csn be

ignored$)$

c$.$ Worked $5,400$ direct labor$-$hours at a cost of $$6\mathrm{.}60$ per hour.

d$.$ Incurred variable msnufacturing averhesed cost totsling $$10,920$ for the manth. A totsl of $3,900$ mschine$-$hours was recarded.

It ts the compeny's policy to cloae al verisnces to coat of goods sold on o monthly beals.

Requlred:

Compute the follawing variance: for June:

a$.$ Materiala price snd quantity varisnce:

b$.$ Labor rate and efficiency viriance:

c$.$ Vorisble overhesd rete and efficiency variances.

$2$ Summarize the vsriance: you computed in requlrement $1$ by showing the net oversal favorable ar unfisvoreble veriance for the

month.

Complete this question by entering your answers in the tabs below.

P$$uired $1$

$1$a$.$ Compute the following variances for June, materials price and quantity variances.

$1$h$.$ Compute the following variances for June, labor rate and efficiency variances.

Compute the following variances for June, variable avertead rate and efficlency variances.

far unfawable, and "None" for no effect $($I$.$e$.,$ zero variance$).$ Input all amounts as poeitwe values.