10-8

Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy Direct matenals 7 microns per toy at $0.32 per micron Direct labor 1.3 hours per toy at $7.40 per hour During July, the company produced 4,700 Maze toys. The toy's production data for the month are as follows: Direct matenals 73,000 microns were purchased at a cost of $029 per micron. 31,875 of these miccons were still in iriventory at the end of the month. Direct labor 6,410 direct labor-hours were worked at a cost of $49,357. Required: 1 Compute the foliowing variances for July, (indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "Nane" for no effect (i.e., zero variance). Input all amounts as positive volues. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity variances. b. The labor rate and efficiency variances