Comprehensive Variance Analysis Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant....
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Comprehensive Variance Analysis 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 Variable expenses . 180,000 196,290 250,000 233,710 Fixed expenses 130,000 130,000 84,000 84,000 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 Standard Price Standard or Hours or Rate Cost $2.00 per pound 6.00 4.80 1.20 $12.00 0.8 hours 0.4 hours* $6.00 per hour $3.00 per hour Based on machine-hours
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