Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant The plant has been experiencing problems as show by its June contribution format income statement below. Flexible Actual Budget $ 260,000 $ 260,000 Sales (5,000 pools) Variable expenses Variable cost of goods sold Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) 84,500 17,000 101,500 158,500 98,865 17,000 115,865 144,135 65,000 65,000 83,000 83,000 148,000 148,000 $ 10,500 $ (3,865) *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 Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 3.3 pounds 0.8 hours 0.6 hours Standard Price or Rate $ 2.50 per pound 5 7.40 per hour $2.90 per hour Standard Cost $9.24 5.92 1.74 $16.90 Based on machine hours During June, the plant produced 5.000 pools and incurred the following costs: a. Purchased 21.500 pounds of materials at a cost of $3 25 per pound b. Used 16 300 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be Ignored) c. Worked 4.600 direct labor hours at a cost of $710 per hour d. Incurred variable manufacturing overhead cost totaling $10,890 for the month. A total of 3,300 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 During June, the plant produced 5,000 pools and incurred the following costs: a. Purchased 21,500 pounds of materials at a cost of $3.25 per pound. b. Used 16,300 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 4.600 direct labor-hours at a cost of $710 per hour. d. Incurred variable manufacturing overhead cost totaling $10,890 for the month. A total of 3,300 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 c. Variable overhead rate and efficiency variances 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month. Complete this question by entering your answers in the tabs below. 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 (... zero variance). Input all amounts as positive values.)