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Exerclse 10-8(Algo) Direct Materlals and Direct Labor Varlances [LO10-1, LO10-2] Dawson Toys, Limited, produces...

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Accounting

Exerclse 10-8(Algo) Direct Materlals and Direct Labor Varlances [LO10-1, LO10-2]
Dawson Toys, Limited, produces a toy called the Maze with the following standards:
Direct materials: 7 microns per toy at $0.34 per micron
Direct labor. 1.4 hours per toy at $7.20 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 $0.32 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.
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