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 (4,000 pools) $ 250.000 5.250,000 Variable expenses: Variable cost of goods sold 66,760 81,190 Variable selling expenses 22,000 22,000 Total variable expenses 88,760 103, 190 Contribution Bordin 161,240 146,810 Fixed expenses: Manufacturing overhead 63,00 63,000 Selling and administrative 88,000 88,000 Total Fixed expenses 151,000 151.000 Net operating income (105) $ 10,240 5 (4,190) *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 Hours Standard Price or Rate Cost Direct materials 3.8 pounds 5 2.40 per pound 5.9.12 Direct labor 0.7 hours $7.90 per hour 5.53 Variable manufacturing overhead 0.6 hours $ 3.40 per hour 2.84 Total standard cost per unit $ 16.69 "Based on machine hours During June the plant produced 4,000 pools and incurred the following costs: a. Purchased 20.200 pounds of materials at a cost of $2.85 per pound b. Used 15.000 pounds of materials in production (Finished goods and work in process inventones are insignificant and can be ignored.) Worked 3,400 direct labor-hours at a cost of $760 per hour d. Incurred variable manufacturing overhead cost totaling $10.260 for the month A total of 2,700 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 Vartable overhead rate and efficiency variances Required 1 Required 2 1a. Compute the following variances for June, materials price and quantity variances.. 1b. Compute the following variances for June, labor rate and efficiency variances. 16. 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 (.es, zero variance). Input all amounts as positive values.) Show less 1a. Material price variance 1a. Material quantity variance 1b. Labor rate variance 1b. Labor efficiency variance 1c Variable overhead rate variance 1c. Variable overhead efficiency variance ????? Required 2 > 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 (ie, zero variance). Input the amount as positive value.) Net vanilince
