Selling and administrative Total fixed expenses Net operating income (loss) 85,000 85,000 152,000 152,000 $ 14,760 $ (3,525) "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: Direct materials Direct labor Standard Quantity or Hours 3.5 pounds 0.4 hours) Variable manufacturing overhead 0.3 hours Standard Price or Rate $2.10 per pound $ 7.60 per hour $ 3.10 per hour Standard Coat $ 7.35 Total standard cost per unit 3.04 0.93 $11.32 "Based on machine-hours. During June, the plant produced 7,000 pools and incurred the following costs: a. Purchased 29,500 pounds of materials at a cost of $2.55 per pound. b. Used 24,300 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 $7.30 per hour. d. Incurred variable manufacturing overhead cost totaling $8,400 for the month. A total of 2,400 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 overall favorable or unfavorable variance for the month. 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 the month. Complete this question by entering your answers in the tabs below. Required 1 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 (i.e., zero variance). Input all amounts as positive values.) Net variance 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 overall 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 June, materials price and quantity variances. 16. Compute the following variances for June, labor rate and efficiency variances. 1c. Compute the following variances for June, 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.e., zero variance). Input all amounts as positive values.) 1a. Material price variance Material quantity variance 16. Labor rate variance, Labor efficiency variance 1c Variable overhead rate variance Variable overhead efficiency variance Required 2 > Show less& 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: Flexible Budget Actual Sales (7,000 poola) Variable expenanst Variable cost of goods sold Variable selling expensen Total variable expenses Contribution margin Fixed expensess Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) $265,000 $265,000 79,240 97,525 19,000 19,000 98,240 116,525 166,760 148,475 67,000 67,000 85,000 85,000 152,000 152,000 $14,760 (3,525) "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 Direct materials 3.5 pounds Direct labor 0.4 hours Variable manufacturing overhead Total standard cost per unit 0.3 hours Standard Price or Rate $2.10 per pound 37.60 per hour $3.10 per hour Standard Cost $7.35 3.04 0.93 $11.32 "Based on machine-hours During June, the plant produced 7,000 pools and incurred the following costs a. Purchased 29,500 pounds of materials at a cost of $2.55 per pound b. Used 24,300 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be