Problem 9-18 Comprehensive Variance Analysis (L09-4, LO9-5, L09-6) 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 Badget Actual Sales (8,000 pools) $ 290,000 $290,000 Variable expenses Variable cost of goods solde 104,400 124,770 Variable selling expenses 20,000 20,000 Total variable expenses 124,400 144,770 Contribution margin 165,600 145,230 Fixed expenses Manufacturing overhead 68,000 68,000 Selling and administrative 86,000 B6,000 Total fixed expenses 154,000 154,000 Net operating income (10) $ 11,600 $ (8,770) 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 lles in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool: Diret materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 3.6 pounds 0.5 hours 0.4 hours Standard Price or Rate $ 2.20 per pound $ 7.70 per hour $ 3.20 per hour Standard Cost $ 7.92 3.85 1.28 $ 13.05 *Based on machine-hours. During June the plant produced 8,000 pools and incurred the following costs: a. Purchased 33,800 pounds of materials at a cost of $2.65 per pound. hlede nele of materiale in an inte har AAAHIRI ATARE nelantaran a. Purchased 33,800 pounds of materials at a cost of $2.65 per pound. b. Used 28,600 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 $7.40 per hour. d. Incurred variable manufacturing overhead cost totaling $12,600 for the month. A total of 3,500 machine-hours was recorded. It is the company's policy to close all variances to cost of goods sold on a monthly basis. Required: 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 mor Complete this question by entering your answers in the tabs below. 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. Ic. 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 (.e., zero variance). Input all amounts as positive values.) Show less 1a. Material price variance Material quantity variance 1b. Labor rale variance Labor efficiency variance 10. Variable overhead rate variance