2 Exercise 10-8 (Static) Direct Materials and Direct Labor Variances (L010-1, L010-2) 25 pi ook 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 materials: 6 microns per toy at $1.50 per micron Direct lobor: 1.3 hours per toy at $21 per hour During July, the company produced 3,000 Maze toys. The toy's production data for the month are as follows: Direct materials 25,000 microns were purchased at a cost of $1.48 per micron 5.000 of these microns were still in inventory at the end of the month Direct labor. 4.000 direct labor-hours were worked at a cost of $88,000 Required: 1. Compute the following variances for July: (Indicate the effect of each varlance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) a. The materials price and quantity variances b. The labor rate and efficiency variances Terences 1 Merial price variance ta Material quantity variante 1. Laberrate variance 1. Labor officiency variance 5 5 $ 5 2,840 3,063 2,100 3400