Toy Company manufactures a plastic swimming pool at its westwood by its June contribution format income statement below: Sales (5,000 pools) Variable expenses: Variable cost of goods sold* Variable selling expenses Total variable expenses Contribution margin Fixed expenses: Manufacturing overhead Selling and administrative Total fixed expenses Net operating income (loss) Flexible Budget $ 272,000 Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit 84,250 23,000 107,250 164,750 64,000 89,000 153,000 $ 11,750 Actual $ 272,000 Standard Quantity or Hours 3.9 pounds 8.8 hours 8.2 hours 99,765 23,000 122,765 149,235 64,000 89,000 153,000 $ (3,765) *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: plant has been experiencing problems as shown Standard Price or Rate $ 2.50 per pound $ 8.00 per hour $ 3.50 per hour Standard Cost $ 9.75 6.40 0.70 $ 16.85 *Based on machine-hours. During June, the plant produced 5,000 pools and incurred the following costs: a. Purchased 24,500 pounds of materials at a cost of $2.95 per pound. b. Used 19,300 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 4,600 direct labor-hours at a cost of $7.70 per hour. d. Incurred variable manufacturing overhead cost totaling $5,070 for the month. A total of 1,300 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 quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in requirement 1 by showing the net overall favorable or unfavorable variance for the month.