Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard cost system to help control costs with the following standards for the Maze toy: Direct materials: 8 microns per toy at $0.75 per micron Direct labour: 3 hours per toy at $12 per hour During July, the company produced 4,200 Maze toys. Production data for the month on the toy follow: Direct materials: 25,000 microns were purchased for use in production at a cost of $0.60 per micron. Some 5,000 of these microns were still in inventory at the end of the month. Direct labour: 4,000 direct labour-hours were worked at a cost of $52,000. Required: Compute the following variances for July: a. Direct materials price and quantity variances. b. Direct labour rate and efficiency variances