Reference no: EM132433028

Question -

Given -

Direct materials: 7 microns per toy at $0.31 per micron

Direct labor: 1.5 hours per toy at $7.50 per hour

During July, the company produced 4,900 Maze toys. The toy's production data for the month are as follows:

Direct materials: 75,000 microns were purchased at a cost of $0.27 per micron. 32,125 of these microns were still in inventory at the end of the month.

Direct labor: 7,850 direct labor-hours were worked at a cost of $64,370.

Compute the following:

a. The materials price and quantity variances.

b. The labor rate and efficiency variances.