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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

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: 6 microns per toy at $0.32 per micron

Direct labor: 1.3 hours per toy at $7.00 per hour

During July, the company produced 5,500 maze toys. The toys production data for the month are as follows:

Direct materials: 78,000 microns were purchased at a cost of $0.29 per micron. 36,750 of these microns were still in inventory at the end of the month.

Direct labor. 7,550 direct labor-hours were worked at a cost of $55,115.

1. a. What is the Material price varience?

b. What is the Material quantity varience?

2. a. What is the Labor rate varience?

b. What is the Labor efficiency varience?

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