Problem 9-18 Comprehensive Variance Analysis (LO9-4, LO9-5, L09-6] 1 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: -5 oints Tlexible Radget Actual $625,000 $675,000 Sales (15,000 pools) Variable expennen Variable cost of goods sold. Variable selling expenses Total variable expenses Contribution margin Fixed expenses Manufacturing overhead Selling and administrative Total fixed expenses Net operating Incode (loss) 435,000 20,000 455,000 220,000 461, 890 20,000 481 890 193, 110 Pilat Terences 130,000 130,000 84.000 34,000 6.000 214,000 $6,000 $120,890) "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 problemes in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool Standard Quantity Hours 3.0 pounds 0.0 hours 0.4 hours Direet materiale Direct labor Variable manufacturing overhead Total standard cont per a standard Price or Rate 5.5.00 per pound $16.00 per hour $ 3.00 per hour Standard Coat 15.09 12.30 1.20 629.06 Based on machine-hours During June the plant produced 15,000 pools and incurred the following costs: Purchased 60.000 pounds of materials at a cost of $4.95 per pound Problem 9-18 Comprehensive Variance Analysis (LO9-4, LO9-5, L09-6] 1 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: -5 oints Tlexible Radget Actual $625,000 $675,000 Sales (15,000 pools) Variable expennen Variable cost of goods sold. Variable selling expenses Total variable expenses Contribution margin Fixed expenses Manufacturing overhead Selling and administrative Total fixed expenses Net operating Incode (loss) 435,000 20,000 455,000 220,000 461, 890 20,000 481 890 193, 110 Pilat Terences 130,000 130,000 84.000 34,000 6.000 214,000 $6,000 $120,890) "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 problemes in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool Standard Quantity Hours 3.0 pounds 0.0 hours 0.4 hours Direet materiale Direct labor Variable manufacturing overhead Total standard cont per a standard Price or Rate 5.5.00 per pound $16.00 per hour $ 3.00 per hour Standard Coat 15.09 12.30 1.20 629.06 Based on machine-hours During June the plant produced 15,000 pools and incurred the following costs: Purchased 60.000 pounds of materials at a cost of $4.95 per pound
