w 10 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: 0 Flexible loints Budget Actual Sales (6,000 pools) $ 225,000 $ 225,000 Slapped Variable expenses: Variable cost of goods sold* 73,620 88,700 Variable selling expenses 17,000 17,000 Total variable expenses 90,620 105,700 Contribution margin 134,380 119,300 ! Fixed expenses: eBook Manufacturing overhead 53,000 53,000 Selling and administrative 68,000 68,000 Total fixed expenses 121,000 121,000 Net operating income (loss) $ 13,380 $ (1,700) References = *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 Standard Hours Rate Cost Direct materials 3.3 pounds 3; 2.30 per pound $ 7.59 Direct labor 0.6 hours $ 6.30 per hour 3.78 Variable manufacturing overhead 0.5 hours* 3; 1.80 per hour 0.90 Total standard cost per unit $ 12-27 *Based on machinehours. During June, the plant produced 6,000 pools and incurred the following costs: a. Purchased 24,800 pounds of materials at a cost 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 ...... .u w 1 0 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 Standard Hours Rate Cost 0 Direct materials 3.3 pounds 3; 2.30 per pound $ 7.59 loints Direct labor 0.6 hours $ 6.30 per hour 3.78 Variable manufacturing overhead 0.5 hours* $ 1.80 per hour 0.90 Skipped Total standard cost per unit 35 12-27 *Based on machine-hours. Bek During June, the plant produced 6,000 pools and incurred the following costs: 6 00 a. Purchased 24,800 pounds of materials at a cost 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 References ignored) c. Worked 4,200 direct labor-hours at a cost of $6.00 per hour. d. Incurred variable manufacturing overhead cost totaling $7,260 for the month. A total of 3,300 machine-hours was recorded. It is the company's policy to close all variances to cost ofgoods 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 requirement 1 by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. '0 Required 1 Required 2 . w 1 O 2. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. loints Skipped 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. eBook 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.) References Show lessA 13. Material price variance 1a. Material quantity variance 1b. Labor rate varianoe 1b. Labor efficiency variance 1c. Variable overhead rate variance 1c. Variable overhead efficiency variance Check my work 10 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. oints c. Variable overhead rate and efficiency variances. Skipped 2. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 References Summarize the variances that you computed in requirement 1 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 10