$\backslash$table$[[$Sales pools

What is the net variance?

uuuyc Sales (4,000 pools) $ 180, Variable expenses: Variable cost of goods sold* 37,720 Variable selling expenses 15, Totat variable expenses 52,720 Contribution margin 127,280 Fixed expenses: Manufacturing overhead 51, Selling and administrative 66, Totat fixed expenses 117 , Net operating income (loss) $ 10,280 $ 180, 49,210 15, 64,210 115, 790 51, 66, 117, $ (1,210) *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 Standard Price or Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit *Based on machine-hours. Hours 3.1 pounds 0.4 hours 0.3 hours* Rate $ 2.10 per pound $ 6.10 per hour $ 1.60 per hour Standa rd Cost $ 6.51 2.44 0.48 $ 9.43 During June, the plant produced 4,000 pools and incurred the following costs: a. Purchased 17,400 pounds of materials at a cost of $2.55 per pound. b. Used 12,200 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 2,200 direl-.t labor-hours at a cost of $5.80 per hour. d. Incurred variable manufacturing overhead cost totalinq $3,000 for the month. A total of 1,500 machine-hours was recorded.