Problem 10-15 Comprehensive Variance Analysis [L010-1, LO10-2, LO10-3] 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 Actual Budget Sales (5,000 pools) Variable expenses: 272,00e 272,00e Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 84,250 23,000 107,250 164,750 99,765 23,000 122,765 149, 235 Manufacturing overhead 64,000 89,000 153,000 64,000 89,000 153,000 Selling and administrative Total fixed expenses Net operating income (loss) $ 11,750 (3,765) 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 Standard Price or Rate Standard Quantity or Cost Hours Direct materials 3.9 pounds 0.8 hours $ 2.50 per pound $ 9.75 6.40 0.70 $ 16.85 Direct labor 8.00 per hour $ 3.50 per hour Variable manufacturing overhead 0.2 hours Total standard cost per unit Based on machine-hours During June, the plant produced 5,000 pools and incurred the following costs a. Purchased 24,500 pounds of materials at a cost of $2.95 per pound b. Used 19,300 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) C. Worked 4,600 direct labor-hours at a cost of $7.70 per hour d. Incurred variable manufacturing overhead cost totaling $5,070 for the month. A total of 1,300 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 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 Jue,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 (i.e., zero variance). Input all amounts as positive alues Show less 1a. Material price variance Material quantity variance 1b. Labor rate variance Labor efficiency variance 1c.Variable overhead rate variance Variable overhead efficiency variance 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 (i.e., zero variance). Input all amounts as positive values. et variance