Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:
- Direct materials: 6 microns per toy at $0.32 per micron
- Direct labor: 1.4 hours per toy at $6.6 per hour
- During July, the company produced 4,500 Maze toys. Production data for the month on the toy follow:
Direct materials: 73,000 microns were purchased at a cost of $0.29 per micron. 39,250 of these microns were still in inventory at the end of the month.Direct labor: 6,600 direct labor-hours were worked at a cost of $45,540.Compute the direct materials price and quantity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effectCompute the direct labor rate and efficiency variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect