Exercise $10-8($Algo$)$ Direct Materials and Direct Labor Variances $[$LO$10-1,$ LO$10-2]$

Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control

costs and has established the following standards for the Maze toy:

Direct materlals: $7$ microns per toy at $$0\mathrm{.}30$ per micron

Direct labor: $1\mathrm{.}4$ hours per toy at $$6\mathrm{.}80$ per hour

During July, the company produced $5,500$ Maze toys. The toy's production data for the month are as follows:

Direct materlals. $74,000$ microns were purchased at a cost of $$0\mathrm{.}26$ per micron. $25,875$ of these microns were still In Inventory at

the end of the month.

Direct labor. $8,100$ direct labor$-$hours were worked at a cost of $$60,750.$

Required:

Compute the following varlances for July:

Note: Indlcate the effect of each varlance by selecting $"$F$"$ for favorable, $"$U$"$ for unfavorable, and "None" for no effect $($I$.$e$.,$

zero varlance$).$ Input all amounts as positive values. Do not round Intermedlate calculatlons. Round final answer to the

nearest whole dollar amount.

a$.$ The materlals price and quantity varlances.

b$.$ The labor rate and efficlency varlances.