Problem 9-18 Compr ehensive 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 Flexib Sales (5,000 pools) Variable expenses : 235,000 5 235,800 Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margir Fixed expenses: 71,3se 86,370 13,880 se 99,370 13,000 13 84,350 150,650 135,63 Manufacturing overhead 62,080 62,000 77,000 Selling and administrative Total fixed expenses Net operating income (loss) 77.000 139,88 139,0 $ 11,650 (3,370) 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 Hours Standard Cost Standard Pcice Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit or 3.8 pounds 2.20 per pound 36 0.5 hours2.30 per hour115 0.7 hours s 6.80 per hour 4-76 $ 14,27 Based on machine-hours During June the plant produced 5.000 pools and incurred the following costs Purh ased 24 000 pounds of materials at acost inventories are insioniticant b Used 18.800 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be gnored) c Worked 4100 direct labor-hours at a cost of $6.50 per hour Pray 1 of 2 Next >