Reference no: EM131705404

Question - 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 $0.50 per micron Direct labor: 1.3 hours per toy at $8 per hour

During July, the company produced 3,000 Maze toys. Production data for the month on the toy follow:

Direct materials: 25,000 microns were purchased at a cost of $0.48 per micron. 5,000 of these microns were still in inventory at the end of the month.Direct labor: 4,000 direct labor-hours were worked at a cost of $36,000.

Required:

1. Compute the following variances for July:

a. The materials price and quantity variances. 

material price variances: 500F

material quantity variance: 1,000U

b. The labor rate and efficiency variances. 

labor rate variance: ?

labor efficiency variance: ?