5.

Doggy Treat Corp produces a dog chew toy, Magic Bone 201 . The company recently started using a standard costing system \& have developed the following standards for the Magic Bone 201: Direct materials: 4.5 grams per bone at $2.55 per gram Direct labour: 0.95 hours per bone at $29 per hour During May, the company produced 5,500 Magic Bone 201 chew toys. Production details for the month of May are: Direct materials: 20,500 grams were purchased at a cost of $2.60 per gram. Direct labour: 5,000 direct labour-hours were worked at a cost of $146,430 Required: 1. Calculate the direct materials \& direct labour variances (price, quantity, rate \& efficiency). 2. Identify if each variance is favourable or unfavourable