Swimline Pool Company manufactures a plastic swimming pool at its Central Plant. Vern Shannon, who has just been appointed general manager of the Central Plant, has been given instructions to tum business around. Upon reviewing the plant's income statement, Vem has concluded that the major problem lies in the variable cost of goods sold. He has been provided with the following standard cost per swimming pool: "Based on machine-hours. During March, the plant produced 7,000 pools and incurred the following costs: a. Purchased and used 35,000 pounds of materials at a cost of $2.80 per pound. b. Worked 3,000 direct labor-hours at a cost of $14.75 per hour. c. Incurred variable manufacturing overhead cost totaling $9,455 for the month. A total of 3,100 machine-hours was recorded. t is the company's policy to close all variances to cost of goods sold on a monthly basis. Required: Compute the following variances for June: 1. Materials price and quantity variances. 2. Labor rate and efficiency variances