I need help finding the:- materials price variance & the materials quantity variance- labor rate variance & labor efficiency variance - variable overhead rate variance & variable overhead efficiency variance- net overall variance **Miller Toy Company Financial Overview***Miller Toy Company* is facing issues with its Westwood Plant, particularly in managing the variable costs of manufacturing plastic swimming pools. This analysis provides insights into their June financial performance and highlights areas for improvement.---**Income Statement Highlights (June)**The plant's income statement, presented in a flexible budget format, is summarized below:- **Sales** (5,000 pools): $260,000- **Variable Expenses:** - Cost of goods sold: Flexible Budget: $84,500 | Actual: $98,865 - Selling expenses: $17,000 - **Total Variable Expenses:** $101,500 | Actual: $115,865- **Contribution Margin:** $158,500 | Actual: $144,135- **Fixed Expenses:** - Manufacturing overhead: $65,000 - Selling and administrative: $83,000 - **Total Fixed Expenses:** $148,000- **Net Operating Income/(Loss):** Flexible Budget: $10,500 | Actual: ($3,865)*Note: Variable costs include direct materials, direct labor, and variable manufacturing overhead.*---**Managerial Review****Janet Dunn**, the new general manager, has identified the primary issue as variable cost control, particularly in the cost of goods sold. She has been provided with a standard cost per swimming pool:- **Standard Cost Details:** - Direct materials: 3.3 pounds @ $2.80/pound = $9.24 - Direct labor: 0.8 hours @ $7.40/hour = $5.92 - Variable manufacturing overhead: 0.6 machine-hours @ $2.90/hour = $1.74 - **Total Standard Cost per Unit:** $16.90*Note: Overhead costs are based on machine-hours.*---**June Cost Details**During June, the plant produced 5,000 swimming pools and incurred the following costs:a. Purchased 21,500 pounds of materials at $3.25 per pound.b. Used 16,300 pounds of materials in production.c. Incurred 4,600 direct labor-hours at $7.10 per hour.d. Variable manufacturing overhead totaled $10,890, with 3,300 machine-hours recorded.The company aims to close cost variances monthly to maintain strict financial

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Description: I need help finding the:- materials price variance & the materials quantity variance- labor rate variance & labor efficiency variance - variable overhead rate variance & variable overhead efficiency variance- net overall variance **Miller Toy Company

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need help finding the: - materials price variance & the materials quantity variance - labor rate variance & labor efficiency variance - variable overhead rate variance & variable overhead efficiency variance - net overall variance

need help finding the: - materials price variance & the materials quantity variance - labor rate variance & labor efficiency variance - variable overhead rate variance & variable overhead efficiency variance - net overall variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

Topic Video

Question

I need help finding the:

- materials price variance & the materials quantity variance

- labor rate variance & labor efficiency variance

- variable overhead rate variance & variable overhead efficiency variance

- net overall variance

**Miller Toy Company Financial Overview**

*Miller Toy Company* is facing issues with its Westwood Plant, particularly in managing the variable costs of manufacturing plastic swimming pools. This analysis provides insights into their June financial performance and highlights areas for improvement.

---

**Income Statement Highlights (June)**

The plant's income statement, presented in a flexible budget format, is summarized below:

- **Sales** (5,000 pools): $260,000
- **Variable Expenses:**
- Cost of goods sold: Flexible Budget: $84,500 | Actual: $98,865
- Selling expenses: $17,000
- **Total Variable Expenses:** $101,500 | Actual: $115,865
- **Contribution Margin:** $158,500 | Actual: $144,135
- **Fixed Expenses:**
- Manufacturing overhead: $65,000
- Selling and administrative: $83,000
- **Total Fixed Expenses:** $148,000
- **Net Operating Income/(Loss):** Flexible Budget: $10,500 | Actual: ($3,865)

*Note: Variable costs include direct materials, direct labor, and variable manufacturing overhead.*

---

**Managerial Review**

**Janet Dunn**, the new general manager, has identified the primary issue as variable cost control, particularly in the cost of goods sold. She has been provided with a standard cost per swimming pool:

- **Standard Cost Details:**
- Direct materials: 3.3 pounds @ $2.80/pound = $9.24
- Direct labor: 0.8 hours @ $7.40/hour = $5.92
- Variable manufacturing overhead: 0.6 machine-hours @ $2.90/hour = $1.74
- **Total Standard Cost per Unit:** $16.90

*Note: Overhead costs are based on machine-hours.*

---

**June Cost Details**

During June, the plant produced 5,000 swimming pools and incurred the following costs:

a. Purchased 21,500 pounds of materials at $3.25 per pound.
b. Used 16,300 pounds of materials in production.
c. Incurred 4,600 direct labor-hours at $7.10 per hour.
d. Variable manufacturing overhead totaled $10,890, with 3,300 machine-hours recorded.

The company aims to close cost variances monthly to maintain strict financial

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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