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Miller Toy Congamy manudactures o plastic wivuming pool at at Westwood Piant. The plant has been experiencing problems as shown by its June contribusion format income stanement below Janet Ougin. whe has jsh been appointed general manoger of the Westwood Plant, has been given instructions to foet thing under controd " Upon reneming the plasms nkpenie statemert, Ms. Dunn has concluded that the mayor problem les in the vacable cost of poods told she hars been provided weth mer fotowing standard cost per swivming pool. During kume thie plart prodiced 6.000 pook and ncurted the following costs: lanared c. Worked 4,200 direct laboi hour at a coet of 9600 per hour I. Witcianed variable marutacturng ovetiead cont totaling $7,200 for the month. A total of 3,300 machine-hours was recorded. During Jume the plant produced 6,000 pocis and incurred the foliowing costs: a. Purchased 24,800 pounch of materiak at a cont of 52.75 per pound b. Used fi,600 pounds of materaks in productaon (Ainhhed goods and work in process inventories are intigrificant and can be ignored) c. Worked 4.200 direnct labor hours at a cont of $6.00 per hout of Incurred varable manufachioing ovethead coat totaling 57.260 for the month A total of 3.300 machine hours was recosiced. It is the comoanys policy to ciove all wariancers to cost of goods sold on a monthly basin. Plequlred: Compute Bhe followeng varumces for jume Materials puce and quartity variamces Labor rate and efficiency varlances. Variable overthead abse and efficiency wariances Summarige the variances Eur you comoulted in (t) above by showing the net overall favorabie or unfavorable variance for the mo Comptete thab question by entering your anwwen in the tabs betuw. 1a. Connpute the following variances for 3uce, maturlal peice and duatitity variances. 16. Compute the fofloming variancen for lune, latior rate and eficitncy varlance. le. Compute the following varlances for huse, wariable overticad rate and efficiency variances. Required: 1. Compute the foliowing variances for lume if Materlats price and quantity variances. b. Wator fate and efficicacy variafses. C. Vitrible ovehead rate and efliciency variances: 2. Sumunatize the vikiances that you computed in (t) above by showing the net overal favorable or unfavorable vasiance for the mork Complete this question by entering yoiar answers In the tabs below. Ia. Compate the following waciancen for June, materials price and quantity variancen. 1b. Compute the following variances for Aune, iabor rate and efficleocy varlances. te. Compute the follwing variances for June, varlable overlsead rate and efliciency variacoec. During dune the plant produced 8000 poole and wcured the following costs a. Purchased 24.800 pound of mateiak at a cont of 3273 per pound ignared) 6. Worked 4 200 derect laber houn at a cont of 3600 per hoser d. Incumed warable manufactiaing ovemheat cot totaling \$7,20o for the manth. A fotal of 3,300 machine hours was recorded It is the comparyil peskcy te ciose all waramces tir cout of poods sold on a monthy basis Required: 1. Conpuite the folowing vatiances for lune b. Labor rate and efficiency wanances. c. Varmble overtiest rate and rificiency variances Meler Toy Company manufactures a plastic swimming pool at its. Westwood Plant. The plant has been experiencing problems as shown by ins June contribution format income statement below: 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: Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to get things under contuol Upon reviewing the plant's income statement, Ms. Dumn has concluded that the major problem lies in the variable cost of goods sold She has been provided with the following standard cost per swimining pool. During June the piant produced 6,000 pools and incurred the following costs: 0. Purchased 24,800 pounds of materials at a cost of $275 per pound b. Used 19,600 pounds of matertals in production. (Finished goods and work in process inventories are insignificant and can be ignored) C. Worked 4,200 direct labor-hours at a cost of 56.00 per hout d. Incurred variable manufacturing overhead cost totaling $7,260 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 quantiy variances 'Based on machine-hours. Buring duee the plont produced 6,000 pools and incurred the following costs: a. Purchased 24,800 pounds of materlaks at a cost of $275 per pound. b. Used 19,600 pounds of materlals in production. (Finished goods and work in process inventories are insignificant and can be ignored.) Worked 4,200 direct labor-hours at a cast of 56.00 per hour. d Incurred variable manufacturing overhead cost totaling 57,260 for the month. A total of 3,300 machine-hours was recorcled. It is the company's policy to close all variances to cost of goods sold on a monthly basis. Required: 1. Compute the foliowing varlances for June: a. Materials price and quaritity variances. b. Labor rate and efficiency vatiances. 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. 1.. Compute the following variances for June, materials price and quantity variances. 16. Compute the following variances for June, labor rate and efficiency variances. 1c. Compute the following variances for June, variable overhead rate and efficlency variances. Koo not round your intormediate caloulations. Indicate the effect of each variance by selecting "F" for favorable, "U. for- It is the cornpany's policy to close all variances to cost of goods sold on a monthly basils Requirad: 1. Gornpate the following variances for dinte 2. Materhls price and qusntity variances. b. Laber mate and efficiericy variances. C. Vartable ovethead rate and efficiency variances. 2. Sumimarize the variances that you computed in (h) above by showing the net overall favorable or unfavorabie yariance for the month Complete this question by entering your answers in the tabs below. 10. Compute the following variances tor June. labor rate and afficiency variances. 1c. Cornpute the following variances for June, variable overlaesd rate and waticiency vardacew. d. Incurred variable manufacturing overhead cost It is the company's policy to close all variances Required: 1. Compute the following vanances for June: a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances 2. Stmmarize the varlances that you computed in (1) above by showing tive net overoll fovorable or untayorable variance for the mon Complete this questif by entering your answers in the tabs below. Summanize the variances that you computed in (1) above by showing the not overall favarable or uhtavorable varlavice for the month. (Indicate the effect of each variance by sielecting "F for favorable. L tor arsavorable, and "None for no etfect (i.eus zero variance). Input the amount as positive value.)
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