5 Check Problem 9-18 (Algo) Comprehensive Variance Analysis (L09-4, LO9-5, LO9-6] oints References 16,000 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. ele Budget Actual Sales (5,000 pools) 5.200.000 50,000 Variable expenses Variable cost of goods sold 54,100 67,330 Variable selling expenses 10,000 Total variable expenses 20.10 30 Contribution margt 129,900 116.670 Fixed expenses Manufacturing overhead 52.000 53.000 Selling and ministrative 62.000 67,000 Total Fixed expenses 119.000 119,000 Not sperating incon (los) $ 10,900 $(2,310) "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 3.2 pounds $ 2.20 per pound $ 7.04 Direct labor 0.5 hours $ 6.20 per hour 3.10 Variable manufacturing overhead 0.4 hours $ 1.70 per hour 0.68 Total standard cost per unit $ 10.82 -Based on machine hours. During June the plant produced 5,000 pools and incurred the following costs: a. Purchased 21,000 pounds of materials at a cost of $2.65 per pound. b. Used 15,800 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be ignored.) I c. Worked 3,100 direct labor-hours at a cost of $5.90 per hour. d. Incurred variable manufacturing overhead cost totaling $4,830 for the month. A total of 2,300 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 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, 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.) N Show less 1a. Material price variance 1a. Material quantity variance 1b Labor rate variance 16. Labor efficiency variance 1c. Variable overhead rate variance ic Variable overhead efficiency variance Required 2 > variance for the 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 (.e. zuro variance). Input the amount as positive value.) Not variance