stals Points Bulk Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its contribution format income statement below. Sales (6,000 pools) $225,000 225,000 Variable cost of goods sold" Variable selling expenses 17,000 Total variable expenses 105,700 Contribution margin 134,380 119,300 Selling and administrative Total fixed expenses 121,000 121,000 Net operating income (loss) 13,380 1.700) "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 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 oost per swimming pool. 33 pounds $2.30 per pound 7,59 $630 per hour 3,78 $1.80 per hour Variable manufacturing overhead 0.5 hours 12.27 During June the plant produced 6.000 pools and incurred the folowing costs Purchased 24.800 pounds of materials at a oost of$2.75 per pound. b. used 19,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored. Worked 4.200 direct labor-hours at a cost of $6.00 per hour d incurred variable manufacturing overhead cost totaing $7.260 for the month. A total of 3,300 machine- hours was recorded. It is the company's policy to cose all variances to cost of goods sold on a monthly basis