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76 Calculating materials variance Martin, Inc. is a man ended Meuble Belgets and Standard Cont System in loc. is a manufacturer of lead crystal glasses. The mandard direct materials tity is 1.0 pound per glass at a cost of $0.50 per band. The result for production of 6.500 glasses was 1.2 und se t as of $0.30 pet Calculate the direct materials cost Vance and the direct materials cfficiency 10m pound Cala Learning Objectives variance 17 Calculating labor variances Martin, Inc, manufact in Inc, manufactures lead crystalglasses. The and direct labor time is hours per glass, at a cost of $15 per hour. The actual e s for month's duction of 6,500 glasses were 0.2 hours per plass, at a cost of $11 per hour Lulate the direct labor cost variance and the direct labor efficiency production Learning Objective 3 Short Exercises $23.6 and 323-7 Note: Short Exercises Exercise $23-8. be completed before attempting Short Learning Objective 3 US Interpreting material and labor variances Refer to your results from Short Exercises $23-6 and 523.7 Requirements for each variance, who in Martin's organization is most likely responsible 2. Interpret the direct materials and direct labor variances for Martins management 523-9 Computing standard overhead allocation rates The following information relates to Morgan, Inc. overhead costs for the month Static budget variable overhead $7,800 Static budget fixed overhead $3.900 Static budget direct labor hours 1,300 hours Static budget number of units 5.200 units Learning Objective 4 Morgan allocates manufacturing overhead to production based on standard direct Labor hours. Compute the standard variable overhead allocation rate and the standard fixed overhead allocation rate. Learning Objective 4 Note: Short Exercise S23-9 must be completed before attempting Short Exercise S23-10. $23-10 Computing overhead variances Refer to the Morgan, Inc. data in Short Exercise S23.9. Last month, Morgan reported the following actual results: actual variable overhead, $10,800, actual fixed overhead, $2,770; actual production of 7.000 units at 0.20 direct labor hours per unit. The standard direct labor time is 0.25 direct labor hours per unit (1,300 static direct labor hours/5,200 static units). Requirements 1. Compute the overhead variances for the month: variable overhead cost variance, variable overhead efficiency variance, fixed overhead cost variance, and fixed overhead volume variance. 2. Explain why the variances are favorable or unfavorable