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Dawson Toys, Ltd., produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established

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Dawson Toys, Ltd., 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: 8 microns per toy at $0.33 per micron Direct labor. 12 hours per toy at $6.70 per hour During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows: Direct materials. 75,000 microns were purchased at a cost of $0.29 per micron. 21,000 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 $51,684 Required: 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 answers to the nearest whole dollar amount.) a. The materials price and quantity variances. b. The labor rate and efficiency variances. 00 in Material price variance Material quantity variance 1b Labor rate varianco Labor officiency variance Dawson Toys, Ltd., 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: 8 microns per toy at $0.33 per micron Direct labor: 1.2 hours per toy at $6.70 per hour During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows: Direct materials 75,000 microns were purchased at a cost of $0.29 per micron, 21000 of these microns were still in Inventory at the end of the month Direct labor. 7080 direct labor-hours were worked at a cost of $51,684. Required: 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 answers to the nearest whole dollar amount.) a. The materials price and quantity variances, b. The labor rate and efficiency variances OK onces 10. Material price variance Material quantity variance 16. Labor rate variance Labor efficiency variance F None U

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