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Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 7 microns per toy at $0.33 per micron Direct labor:
Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 7 microns per toy at $0.33 per micron Direct labor: 1.2 hours per toy at $6.80 per hour During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows: Direct materials: 80,000 microns were purchased at a cost of $0.31 per micron. 32,750 of these microns were still in inventory at the end of the month. Direct labor: 7,080 direct labor-hours were worked at a cost of $52,392. Required: Compute the following variances for July: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None
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