Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 10 - Standard Costs and Variances - Questions - Page 448: 10-3

Answer

The purchasing manager could be responsible for a materials' price variance. The production manager is ordinarily responsible for the quantity variance and the labor efficiency variance. However, the purchasing manager could be held responsible if the purchase of poor-quality materials resulted in excessive labor processing time.

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