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

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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.