Problem 9-18 Comprehensive Variance Analysis (L09-4, LO9-5, LO9-6] Miller Toy Company manufactures a plastic swimming pool tits Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below Flexible Budot 700.000 Actual 200,00 Sales (9.000 pools) Variable expenses Variable cost of sods sold Variable selling expenses Total variable expenses Contribution margin Fixed expensest Manufacturing overhead Selling and dinistrative Total fixed expenses Net operating income (Loss) 54,500 12.000 101,500 158. See 146 135 83.000 148, 10.500 $ 148,00 (3,05) "Contains direct materials, direct labor and variable manufacturing overhead Janet Dunn, who has just been appointed general manager of the Westwood Pant 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 Standard Price Standard 33 0 hours S 2.0 Direct materials Direct labor Variable soufacturing overhead Total standard cost per unit pound "Based on machine-hours. During June the plant produced 5,000 pools and incurred the following costs a. Purchased 21.500 pounds of materials at a cost of $325 per pound b. Used 16,300 pounds of materials in production Finished goods and work in process inventories are insignificant and can be ignored c. Worked 4.000 direct laborehours at a cost of 5710 per hour Incurred variable manufacturing overhead cost totaling $10,890 for the month A total of 3.300 machine hours was recorded It is the company's policy to close avenances to cost of goods sold on a monthly basis. Required: "Based on machine hours. During June the plant produced 5,000 pools and incurred the following costs a. Purchased 21,500 pounds of materials at a cost of $3 25 per pound. b. Used 16,300 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be ignored.) Worked 4.600 direct labor hours at a cost of 57.10 per hour d. Incurred variable manufacturing overhead cost totaling $10,890 for the month. A total of 3.300 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 overal 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 lune, materials price and wantity variances 1b. Compute the following variances for lune, labor rate and efficiency variances ic. Compute the following variances for June, variable overhead rate and efficiency wariances (Do not round your intermediate calculations indicate the effect of each variance by selecting unfavorable, and "None for no effectie ero variance Input amounts as positive values.) for favorable for Required 2 > 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 them Complete this question by entering your answers in the tabs below. Required i 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 (.e. zero variance). Input the amount as positive value) Net variance