Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. T
ID: 2447121 • Letter: M
Question
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:
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:
a.
Purchased 25,400 pounds of materials at a cost of $2.45 per pound.
b.
Used 20,200 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)
d.
Incurred variable manufacturing overhead cost totaling $5,100 for the month. A total of 1,500 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. Direct materials price and quantity variances.
b. Direct 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 unfoavorable variance for the month.
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:
Explanation / Answer
ANSWER:
=15000, z-multiple = 2.326, B = 800
The approximate sample size required to produce a 98% confidence interval for the mean is given by