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: Direct materials: 7 microns per toy at $0.33 per micron Direct labor: 1.2 hours per toy at $7.00 per hour During July, the company produced 5,500 Maze toys. Production data for the month on the toy follow: Direct materials: 74,000 microns were purchased at a cost of $0.29 per micron. 25,875 of these microns were still in inventory at the end of the month. Direct labor: 7,200 direct labor-hours were worked at a cost of $54,720.

Compute the following variances for July: The materials price and quantity variances.

The labor rate and efficiency variances.