Longman, Inc. is a manufacturer of lead crystal glasses. The standard direct mat

Question

Longman, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 0.9 pound per glass at a cost of $0.50 per pound. The actual result for one month's production of 6,800 glasses was 1.1 pounds per glass, at a cost of $0.60 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance - Direct Materials Cost Variance Select the formula, then enter the amounts and compute the efficiency variance for direct materials and identify whether the variance is favorable (F) or unfavorable (U) -Direct Materials Efficiency Variance

Explanation / Answer

Total Material Cost Variance = Standard Cost - Actual Cost                                                  = 0.90 x 0.50 x 6800 - 0.60 x 1.1 x 6800                                                  = 3060 - 4488                                                  = 1428 Unfav Direct Material Quantity Variance = (Standard Quantity - Actual Quantity) x Standard Rate                                                              = ( 6800 x 0.90 - 6800 x 1.1) x 0.50                                                              = 680 Unfav

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