S23-6 Calculating materials variances Goldman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 0.7 pound per glass at a cost of $0.30 per pound. The actual result for one months production of 6,900 glasses was 1.3 pounds per glass, at a cost of $0.40 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance.

S23-7 Calculating labor variances Goldman, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.5 hours per glass, at a cost of $17 per hour. The actual results for one months production of 6,900 glasses were 0.2 hours per glass, at a cost of $11 per hour. Calculate the direct labor cost variance and the direct labor efficiency variance.

Interpreting material and labor variances Refer to your results from Short Exercises S23-6 and S23-7. Requirements 1. For each variance, who in Goldmans organization is most likely responsible? 2. Interpret the direct materials and direct labor variances for Goldmans management.