Q1 please PROBLEM 10-15 Comprehensive Variance Analysis LO10-1, LO10-2, LO10-3Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant hasbeen experiencing problems as shown by its June contribution format income statement below:FlexibleBudgetActualSales (15,000 pools)$675,000$675,000Variable expenses:Variable cost of goods soldVariable selling expenses435,00020,000461,89020,000Total variable expenses455,000481,890Contribution margin220,000193,110Fixed expenses:Manufacturing overheadSelling and administrative.Total fixed expenses130,00084,000130,00084,000214,000214,000Net operating income (loss)$ 6,000$ (20,890)*Contains direct materials, direct labor, and variable manufacturing overhead.Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been giveninstructions to “get things under control." Upon reviewing the plant's income statement, Ms. Dunnhas concluded that the major problem lies in the variable cost of goods sold. She has been proviaawith the following standard cost per swimming pool:Standard Quantityor HoursStandardCostStandard Priceor Rate$15.00$5.00 per pound$16.00 per hour$3.00 per hourDirect materials..3.0 pounds0.8 hoursDirect labor12.801.20$29.00Variable manufacturing overhead0.4 hoursTotal standard cost per unit"Based on machine-hours.During June the plant produced 15,000 pools and incurred the following costs:Purchased 60,000 pounds of materials at a cost of $4.95 per pound.b.a.Used 49,200 pounds of materials in production. (Finished goods and work in process invento-ries are insignificant and can be ignored.)Worked 11,800 direct labor-hours at a cost of $17.00 per hour.Incurred variable manufacturing overhead cost totaling $18,290 for the month. A total of5,900 machine-hours was recorded.It is the company's policy to close all variances to cost of goods sold on a monthly basis.C.d.Required:1. Compute the following variances for June:Materials price and quantity variances.b.а.Labor rate and efficiency variances.Variable overhead rate and efficiency variances.Summarize the variances that you computed in (1) above by showing the net overall favorableor unfavorable variance for the month. What impact did this figure have on the company'sincome statement? Show computations.3.с.2.Pick out the two most significant variances that you computed in (1) above. Explain toMs. Dunn possible causes of these variances.

Standard is set in advance, from the standards set the actual performance is measured so as to find…

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 Actual Sales (15,000 pools) $675,000 $675,000 Variable expenses: Variable cost of goods sold Variable selling expenses 435,000 20,000 461,890 20,000 Total variable expenses 455,000 481,890 Contribution margin 220,000 193,110 Fixed expenses: 130,000 84,000 130,000 Manufacturing overhead Selling and administrative. Total fixed expenses 84,000 214,000 214,000 Net operating income (loss) $ 6,000 $ (20,890) *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 provide with the following standard cost per swimming pooł: Standard Quantity or Hours Standard Price or Rate Standarda Cost $5.00 per pound $16.00 per hour $3.00 per hour $15.00 12.80 Direct materials 3.0 pounds Direct labor 0.8 hours Variable manufacturing overhead 0.4 hours 1.20 Total standard cost per unit $29.00 "Based on machine-hours. During June the plant produced 15,000 pools and incurred the following costs: Purchased 60,000 pounds of materials at a cost of $4.95 per pound. b. a. Used 49,200 pounds of materials in production. (Finished goods and work in process invento- ries are insignificant and can be ignored.) Worked 11,800 direct labor-hours at a cost of $17.00 per hour. Incurred variable manufacturing overhead cost totaling $18,290 for the month. A total of 5,900 machine-hours was recorded. It is the company's policy to close all variances to cost of goods sold on a monthly basis. C. d. 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.