Problem 9-18 (Algo) Comprehensive Variance Analysis (LO9-4, LO9-5, LO9-6] 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: 5 Flexible Budget Actual Sales (7.000 pools) $ 255,000 5.255,000 Variable expenses Variable cost of goods sold 85,400 104,590 Variable selling expenses 15,000 15,000 Total variable expenses 100,400 119,590 Contribution margin 154, GOO 135,410 Tixed expenses Manufacturing overhead 64,000 64,000 Selling and administrative 79,000 79,000 Total fixed expenses 143,000 143,000 Het operating income (los) $ 11,600 $ (. 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 of Standard Hours Standard Price or Rate Cost Direct materials 4.0 pounds Direct labor 2.40 per pound 59.60 0.3 hours $ 7.00 per hour 2.10 Variable natacturing overhead 0.2 hours 5.2.50 per hour Total standard cost per unit $ 12.20 "Based on machine hours. During June the plant produced 7,000 pools and incurred the following casts a. Purchased 33,000 pounds of materials at a cost of $2.85 per pound, b. Used 27,800 pounds of materials in production (Finished goods and work in process inventories are insignificant and can be Ignored) c. Worked 2.700 direct labor hours at a cost of $6.70 per hour. d. Incurred variable manufacturing overhead cost totaling 54,930 for the month. A total of 1700 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 0.50 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month Required: 1. Compute the following variances for June 1 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 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 (1.e, zero variance), Input all amounts as positive values.) Show less Ta Material price variance Ta Material quantity variance 1b. Laborrate variance 1b. Labor eficiency variance 1. Variable overhead rate variance 1. Valable overhead officiency variance Here Required 2 > 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 monty Complete this question by entering your answers in the tabs below. Required: 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 Por favorable, "U" for unfavorable, and "None" for no effect (y zero variance). Tnput the amount as positive value.) Niva