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: 8 microns per toy at $0.33 per micron

Direct labor: 1.4 hours per toy at $6.90 per hour

During July, the company produced 5,000 Maze toys. Production data for the month on the toy follow:

Direct materials: 74,000 microns were purchased at a cost of $0.31 per micron. 24,000 of these microns were still in inventory at the end of the month.

Direct labor: 7,400 direct labor-hours were worked at a cost of $54,760.

1. Compute the following variance for july

a The materials price and quantity variances

b. The labor rate and efficiency variances