Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3] 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 Budgeted Actual Sales (5,000 pools) $272.000 $272,000 Variable expenses: Variable cost of 99.765 23,000 23,000 107,250 122,765 goods sold Variable selling expenses Total variable Contribution margin 64,750 Fixed expenses: 64,000 64,000 89,000 89,000 Selling and Total fixed expenses 153 ,000 Net operating incomes 11,750 S (3,765) loss) 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 Price Standard Quantty or or Rate Cost S9.75 0.8 hours $8.00 per hour 6.40 $3.50 per hour 0.70 Hours 50 per 3.9 pounds pound Direct materials Direct labor Variable manufacturing 0.2 hours overhead 16.85 Total standard cost Based on machine-hours