Requirement $2.$ Interpret the direct materials and direct labor variances for Ramirez, Inc.$\text{'}$s management.

The $$1,170$ favorable direct materials cost variance indicates that the actual direct materials cost per pound was $$ than the standard cost per pound. This $$ Ramirez, Inc.$\text{'}$s operating income by $$1,170.$

The $$650$ unfavorable direct materials efficiency variance indicates that the actual pounds used was

$$ than the total pounds allowed to manufacture the $6,500$ glasses. This $$ Ramirez, Inc.$\text{'}$s operating income by $$650.$

The $$6,500$ favorable direct labor price variance means that Ramirez, Inc.$\text{'}$s employees were paid

$$ per hour than budgeted. This $$ Ramirez, Inc.$\text{'}$s operating income by $$6,500.$