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 $0.32 per micron Direct labor: 1.4 hours per toy at $6.70 per hour During July, the company produced 4,900 Maze toys. The toy's production data for the month are as follows: Direct materials: 72,000 microns were purchased at a cost of $0.30 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 $52,272.

Required:

1. Compute the following variances for July:

a. The materials price and quantity variances.

b. The labor rate and efficiency variances.