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Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard costing system to help control costs with the following

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Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard costing system to help control costs with the following standards for the Maze toy: Direct materials: 8 microns per toy at $5.50 per micron Direct labour: 0.80 hours per toy at $16.75 per hour Variable overhead: 0.80 hours per toy at $7.75 per hour During July, the company planned to make 6,000 toys, the normal volume, and produced 6,100 Maze toys. Production data for the month on the toy follow: Direct materials: 36,600 microns were purchased for use in production at a cost of $5,40 per micron. 14,500 of these microns were still in inventory at the end of the month. Direct labour: 6,000 direct labour-hours were worked at a cost of $102,000. Variable overhead cost was $49,490, and fixed overhead cost was $69,000. The budget variance for July was $0. Required: 1-a. Compute the direct materials price and quantity variances for July. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 1-b. Compute the direct labour rate and efficiency variances for July. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero variance).) 2. This part of the question is not part of your Connect assignment. 3-a. Compute the variable overhead cost variances. 3-b. Based on your calculation, is it possible to conclude that there were inefficiencies in operations causing excessive variable overhead to be incurred? Yes No 4. Compute the fixed overhead volume variance. (Round intermediate calculation to 3 decimal places and round your final answer to nearest whole dollar amount.) 5. Is there over-or underapplied fixed overhead? (Round intermediate calculation to 3 decimal places and round your final answer to nearest whole dollar amount.)

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