Exerclse $10-8($Algo$)$ Direct Materlals and Direct Labor Varlances $[$LO$10-1,$ LO$10-2]$

Dawson Toys, Limited, produces a toy called the Maze with the following standards:

Direct materials: $7$ microns per toy at $$0\mathrm{.}34$ per micron

Direct labor. $1\mathrm{.}4$ hours per toy at $$7\mathrm{.}20$ per hour

During July, the company produced $5,000$ Maze toys. The toy's production data for the month are as follows:

Direct materials: $71,000$ microns were purchased at a cost of $$0\mathrm{.}32$ per micron. $27,250$ of these microns were still in inventory at the

end of the month.

Direct labor: $7,500$ direct labor$-$hours were worked at a cost of $$57,750.$

Requlred:

Compute the following variances for July:

Note: Indleate the effect of each varlance by selecting $"$F$"$ for fovorable, $"$U$"$ for unfavorable, and "None" for no effect $($l$.$e$.,$ zero

varlance$).$ Input all amounts as positlve values. Do not round Intermedlate calculations. Round final answer to the nearest whole

dollar amount.

a$.$ The materials price and quantity variances.

b$.$ The labor rate and efficiency variances.