Exercise 10-8 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Dawson Toys, Limited, produces a toy called the Maze. The company has recenty created a standard cost system to help control costs and has established the folowing standards for the Maze toy: Direct materials. 6 microns per toy at $0.31 per micron Direct laboc: 1.4 hours per toy at 5700 per hour During July, the company produced 5,400 Maze toys. The loy's production data for the month are as follows: DVect materials: 74,000 microns were purchased at a cost of $0.29 per micton. 33,500 of these microns were still in inventory at the ond of the month Direct labor 7,960 direct laborthours were worked at a cost of $58,908 Required: 1. Compute the following variances for July: (lndicate the effect of each variance by selecting "F" for faverable, "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 laboe rate and efficiency variances