Exercise 10-7 (Algo) Direct Materials Variances (LO10-1) 7 Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: 1.11 points Standard Quantity or Hours 6.90 pounds 0.50 hours Direct materials Direct labor Standard Price or Rate $ 2.50 per pound $13.50 per hour Standard Cost $17.25 $ 6.75 eBook During the most recent month, the following activity was recorded: Print a. Thirteen thousand four hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,340 units, using 12,060 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 770 hours of direct labor time were recorded at a total labor cost of $9,240. References Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) Materials price variance Materials quantity variance 8 Exercise 10-8 (Algo) Direct Materials and Direct Labor Variances (LO10-1, LO10-2] Dawson Toys, Ltd., 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: 1.11 points Direct materials: 7 microns per toy at $0.32 per micron Direct labor: 1.2 hours per toy at $6.70 per hour During July, the company produced 5,500 Maze toys. The toy's production data for the month are as follows: eBook Direct materials: 77,000 microns were purchased at a cost of $0.29 per micron. 28,875 of these microns were still in inventory at the end of the month. Direct labor. 7,100 direct labor-hours were worked at a cost of $50,410. Print References Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a. Material price variance Material quantity variance Labor rate variance Labor efficiency variance 1b