Smithson, Inc., manufactures lead crystal glasses. Smithson, Inc.'s managers recently calculated the folld Variances after completing production of 6,900 glasses: Direct materials cost variance $828 F Direct labor cost variance $11,040 F Direct materials efficiency variance $2,484 U Direct labor efficiency variance $37,260 F Read the eauirements Requirement 1. For each variance, who in Smithson, Inc.'s organization is most likely responsible? Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance
Smithson, Inc., manufactures lead crystal glasses. Smithson, Inc.'s managers recently calculated the folld Variances after completing production of 6,900 glasses: Direct materials cost variance $828 F Direct labor cost variance $11,040 F Direct materials efficiency variance $2,484 U Direct labor efficiency variance $37,260 F Read the eauirements Requirement 1. For each variance, who in Smithson, Inc.'s organization is most likely responsible? Direct materials cost variance Direct materials efficiency variance Direct labor cost variance Direct labor efficiency variance
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 4E: The following data relate to the direct materials cost for the production of 50,000 automobile...
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Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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