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 $0.30 per micronDirect labor: 1.4 hours per toy at $7.10 per hour

During July, the company produced 4,900 Maze toys. Production data for the month on the toy follow:

Direct materials:72,000 microns were purchased at a cost of $0.26 per micron. 29,125 of these microns were still in inventory at the end of the month.Direct labor:7,260 direct labor-hours were worked at a cost of $54,450.

b.The labor rate and efficiency variances.