Problem 11-15 Comprehensive Variance Analysis [L011-1, LO11-2, LO11-3] Mil ler 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: Budgeted Actual Sales (7,000 pools) Variable cxpenses: 310,000 0,810 Variable cost of goods sold 131,685 Variable selling expenses Total variable expenses Contribution margin Fixed expenses: 25,000 4,190 66,000 25,000 153,315 66,000 Manufacturing overmead Seling and administrative Total fixed expenses Net operating income S 17,190 S (3,685) 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 Price Standard Quantity or Hours or Rate Cost S11.07 3.28 1.48 $15.83 Direct materials Direct labor ariable manufacturing overhead Total standard cost $2.70 per pound $8.20 per hour $3.70 per hour 4.1 pounds 0.4 hours 0.4 hours Based on machine-hours. During June the plant produced 7,000 pools and incurred the following costs: a. Purchased 33,70D pounds of materials at a cost of $3.15 per pound b. Used 28,500 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 3,400 direct labor-hours at a cost of S7.90 per hour d. Incurred variable manufacturing overhead cost totaling $12,710 for the month. A total of 3,100 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. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Material price varianoe Material quantity variance b. Labor rate and efficiency variances (Indicate the effect of each variance by selecting F for favorable, "U" for unfavorable, and None for no effect (i.e., zero variance.) Labor rate variance Labor efficiency variance G. 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.., zero variance).) Variable overhead rate variance Variable overhead efficiency variance 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.(Input all values as positive amounts. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Material price variance Material quantity variance Labor rate variance Labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance Net variance