A price, cost, or quantity that is expected under normal conditions. Identifying the benefits of standard costs Setting standards for a product may involve many employees of the company. Identify some of the employees who may be involved in setting the standard costs, and describe what their role might be in setting those standards. Calculating materials variances Johnson, Inc. is a manufacturer of lead crystal glasses. The standard direct materials quantity is 0.8 pound per glass at a cost of $0.30 per pound. The actual result for one months production of 6, 900 glasses was 1.1 pounds per glass, at a cost of $0.40 per pound. Calculate the direct materials cost variance and the direct materials efficiency variance. Calculating labor variances Johnson, Inc. manufactures lead crystal glasses. The standard direct labor time is 0.3 hours per glass, at a cost of $13 per hour. The actual results for one month's production of 6, 900 glasses were 0.2 hours per glass, at a cost of $10 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. For each variance, who in Johnson's organization is most likely responsible? Interpret the direct materials and direct labor variances for Johnson's management