"During June the plant produced 6,000 pools and incurred the following costs: a. Purchased 28,400 pounds of materials at a cost of $2.75 per pound. b. Used 23,200 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) c. Worked 5,400 direct labor-hours at a cost of $6.60 per hour. d. Incurred variable manufacturing overhead cost totaling $10,920 for the month. A total of 3,900 machine-hours was recorded. It is the company’s policy to close all variances to cost of goods sold on a monthly basis."

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