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Selling and administrative Total fixed expenses Net income Contains direct materials, direct labour, and variable manufacturing overhead. Janet Dunn, the general manager of the Westwood

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Selling and administrative Total fixed expenses Net income "Contains direct materials, direct labour, and variable manufacturing overhead. Janet Dunn, the general manager of the Westwood Plant, wants to get things under control. She needs information about the operations in June since the income statement signalled that the problem could be due to the variable cost of goods sold. Dunn learns the following about operations and costs in June: a. 30,100 kilograms of materials were purchased at a cost of $3.90 per kilogram. b. 22.000 kilograms of materials were used in production. (Finished goods and work-in-process inventories are insignificant and can he lanaradi) c. 11,900 direct labour-hours were worked at a cost of $8 per hour. d. Variable manufacturing overhead cost totalling $21,645 for the month was incurred. A total of 5,850 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. Direct materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The standard cost for one pool is as follows: 2-a. Summarize the variances you computed in part (1) by showing the net overall favourable or unfavourable variance for the month. (Indicate the effect of variance by selecting "F" for fovourable, " U " for unfavourable, and "None" for no effect (i.e., zero variance).) unfavourable, and "None" for no effect (i.e., zero variance).) The plant has been experiencing problems for some time, as is shown by its June income statement when it made and sold 15,100 pools; the normal volume is 15,250 pools per month. Fixed costs are allocated using machine-hours. Answer is complete but not entirely correct

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