5 Exercise 10-8 Direct Materials and Direct Labor Variances [LO10-1, L010-2] Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy: 10 points Skipped Direct materials: 7 microns per toy at $0.32 per micron Direct labor: 1.4 hours per toy at $7.00 per hour eBookDuring July, the company produced 5,200 Maze toys. The toy's production data for the month are as follows: Print Direct materials. 75,000 microns were purchased at a cost of $0.29 per micron. 29,500 of these microns were stil in inventory at the end of the month. Direct labor 7,680 direct labor-hours were worked at a cost of $57,600. References Requirec 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. 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. variance by answer to the nearest w o variance), Input all amftect 1a. Material price variance Material quantity variance 1b. Labor rate variance Labor efficiency variance