Topper Toys has developed a new toy called the Brainbuster. The company has a standard cost system to help control costs and has established the following standards for the Brainbuster toy:

Direct materials: 8 diodes per toy at $0.30 per diode

Direct labor: 1.2 hours per toy at $7 per hour

During August, the company produced 5,000 Brainbuster toys. Production data on the toy for August follows:

Direct materials: 70,000 diodes were purchased for use in production at a cost of $0.28 per diode. Some 20,000 of these diodes were still in inventory at the end of the month.

Direct labor: 6,400 direct labor-hours were worked at a cost of $48,000.

Required:

1. Compute the following variances for August (and circle whether they are favorable or unfavorable:

a. Direct materials price and quantity variances.

b. Direct labor rate and efficiency variances.

a. Direct Materials Price Variance = __________ favorable or unfavorable

Direct Materials Quantity Variance = __________ favorable or unfavorable

b. Direct Labor Rate Variance = __________ favorable or unfavorable

Direct Labor Efficiency Variance = __________ favorable or unfavorable