6 Exercise 10-8 Direct Materials and Direct Labor Variances LO10-1, LO10-2 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: 2.5 points Direct materials: 8 microns per toy at $0.31 per micron Direct labor: 1.2 hours per toy at $6.80 per hour During July, the company produced 5,100 Maze toys. The toy's production data for the month are as follows: Print Direct materials. 76,000 microns were purchased at a cost of $0.29 per micron. 25.000 of these microns were still in inventory at the References end of the month Direct labor 6,520 direct labor-hours were worked at a cost of $47,596 Required 1. Compute the following varlances 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. 1a Material price variance Material quantity variance Labor rate variance Labor efficiency variance 1b