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 $0.35 per micron

Direct labor: 1.3 hours per toy at $7.30 per hour

During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows:

Direct materials: 73,000 microns were purchased at a cost of $0.31 per micron. 32,500 of these microns were still in inventory at the end of the month.

Direct labor: 7,620 direct labor-hours were worked at a cost of $58,674.

Required:

1. Compute the following variances for July:

a. The materials price and quantity variances.

b. The labor rate and efficiency variances.

Answer is complete but not entirely correct. \begin{tabular}{|l|ll|ll|} \hline 1a. Material price variance & $ & 3,120 & F & \\ \hline 1a. Material quantity variance & $ & 2,756 & U & \\ \hline 1b. Labor rate variance & $ & 3,540 & U & \\ \hline 1b. Labor efficiency variance & $ & 3,550 & U & \\ \hline \end{tabular}