Exerclse 10-8 (Algo) Direct Materlals and Dlrect Labor Varlances [LO10-1, LO10-2] 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 materials: 7 microns per toy at $0.30 per micron Direct labor. 1.4 hours per toy at $6.80 per hour During July, the company produced 5,500 Maze toys. The toy's production data for the month are as follows: Direct materials: 74,000 microns were purchased at a cost of $0.26 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. Requlred: 1. Compute the following variances for July: Note: Indlcate the effect of each varlance by selectlng "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values. Do not round Intermedlate calculations. Round flnal answer to the nearest whole dollar amount. a. The materials price and quantity variances. b. The labor rate and efficiency variances