https://IWco Submit Save & Exit Help Saved b10-15 Check my work 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 Budget $ 265,000 $265,000 Actual Sales (8,000 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 88,960 16,000 104,960 160,040 106,490 16,000 122,490 142,510 65,000 80,000 65,000 80,000 145,000 15,040 (2,490) 145,000 Net operating income (loss) nces "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 Hours 3.0 pounds 0.4 hours 0.3 hours Standard Price Standard or Rate Cost Direct naterials Direct labor Variable manufacturing overhead Total sta ndard cost per unit $ 2.50 per pound S 7.10 per hour $2.60 per hoar $7.50 2.04 0.78 s 23.12 Based on machine-hours. During June, the plant produced 8,000 pools and incurred the following costs a. Purchased 29.000 pounds of materials at a cost of $2.95 per pound. Prey 1 of 1 Next Search or type URL Save & Exit Submit Help Saved 15 G Check my work Standard Quantity or Standard Standard Price Cost or Rate Hours $2.50 per pound $ 7.10 per hour $ 2.60 per hour $ 7.50 3.0 pounds Direct materials Direct labor 2.84 0.4 hours 0.78 0.3 hours Variable manufacturing overhead S 11.12 Total standard cost per unit Based on machine-hours During June, the plant produced 8,000 pools and incurred the following costs: a. Purchased 29,000 pounds of materials at a cost of $2.95 per pound b. Used 23,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c Worked 3,800 direct labor-hours at a cost of $6.80 per hour d. Incurred variable manufacturing overhead cost totaling $8,100 for the month, A total of 2,700 machine-hours was recorded. 2.2 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 () above by showing the net overall favorable or unfavorable varlance for the month. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prev 1 of 1 Next > Q Search or type URL 2 3 4 5 6 Submit Save & Exit Help Saved -15 i) Check my work are insignimcant ana can oe ignorea. c. Worked 3,800 direct labor-hours at a cost of $6.80 per hour d. Incurred variable manufacturing overhead cost totaling $8,100 for the month. A total of 2.700 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 () 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 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 "E for fave unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 1a Material price variance Material quantity variance 1b Labor rate variance Labor efficiency variance: Prev 1 of 1 Next Q Search or type URL # 2 3 4 6 7 LO Complete this question by entering your answers in the tabs below. Required 2 Required 1 la. 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 favc unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 1a Material price variance Material quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance Required 2 Prev 1 of 1 Next Q Search or type URL o% A & 2 3 4 6 7 8 LO Check my work monthly basis. It is the company's policy to close all variances to cost of goods sold on a 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 2 Required 1 Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavoral month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" zero variance). Input all amounts as positive values.) Net variance Required 1 Prev 1 of 1 Next Q Search or type URL $ 2 8 3 4 6 7 LO 46