, manufactures lead crystal glasses. 's managers recently calculated the following:Variances after completing production of glasses:Direct materials cost varianceDirect labor cost varianceDirect materials efficiency varianceDirect labor efficiency varianceRead the 1. For each variance, who in 's organization is most likely responsible?Direct materials cost varianceDirect materials efficiency varianceDirect labor cost varianceDirect labor efficiency varianceRequirement 2. Interpret the direct materials and direct labor variances for 's management. The direct materials cost variance indicates that the actual direct materials cost per pound was▼morelessthan the standard cost per pound. This▼decreasedincreased's operating income by .The direct materials efficiency variance indicates that the actual pounds used was▼lessmorethan the total pounds allowed to manufacture the glasses. This▼decreasedincreased's operating income by .The direct labor price variance means that 's employees were paid▼lessmoreper hour than budgeted. This▼decreasedincreased's operating income by .The direct labor efficiency variance means that it actually took▼morefewerdirect labor hours than were budgeted to produce glasses. This▼increaseddecreased's operating income by .

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Answer and Explanation:

Direct material cost variance-

Purchasing

Direct material efficiency variance-

Production

Direct labor cost variance- Human Resources

Direct labor efficiency variance-Production

The $1650 favorable direct material cost variance indicates that actual direct materials cost per pound was less than standard cost per pound. This increased Martin Inc's operating income by 1560.

Therefore Martin Inc bought lower than they normally purchase raw materials(pounds) which invariably increased profit(operating income)

The 650 unfavorable Direct Materials efficiency variance indicates that the actual pounds used was more than the total pounds allowed to manufacture 6500 glasses. This decreased Martin Inc's operating income by $650.

Efficiency was low as more materials were used than planned, therefire more cost and less profit

The $9100 favorable direct labor price variance means that Martin Inc's employees were paid less than budgeted. This increased Martin Inc's operating income by $9100.

Employees(labour) cost lower than expected hence higher profit(operating income)

The $11,700 favouravle direct labor efficiency variance means that it actually took fewer direct labor hours than were budgeted to produce 6500 glasses. Thus increased Martin Inc's operating income by $11,700.

Labour hours were lower than expected hence less cost more profit

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