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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:

$*$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:

$*$Based on machine$-$hours.

During June, the plant produced $7,000$ pools and incurred the following costs:

a$.$ Purchased $28,800$ pounds of materials at a cost of $$2\mathrm{.}85$ per pound.

b$.$ Used $23,600$ pounds of materials in production. $($Finished goods and work in process inventories are insignificant and

can be ignored.$)$

c$.$ Worked $2,700$ direct labor$-$hours at a cost of $$6\mathrm{.}10$ per hour.

d$.$ Incurred variable manufacturing overhead cost totaling $$10,350$ for the month. A total of $4,500$ machine$-$hours was

recorded.

It 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:

a$.$ Materials price and quantity variances.

b$.$ Labor rate and efficiency variances.

c$.$ Variable overhead rate and efficiency variances.

Summarize the variances that you computed in requirement $1$ by showing the net overall favorable or unfavorable

variance for the month.

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