Asked by Wenlu Zhang on Jul 07, 2024
Verified
Which department is usually held responsible for an unfavourable materials quantity variance?
A) Purchasing.
B) Marketing.
C) Production.
D) Engineering.
Materials Quantity Variance
The difference between the expected quantity of materials needed for production and the actual quantity used, valued at standard cost.
Labour Rate Variance
The difference between the actual cost of labor and the expected (standard) cost, indicating efficiency in labor utilization.
Variable Overhead Efficiency Variance
The difference between the actual hours worked to produce an item and the standard hours expected, multiplied by the variable overhead rate.
- Identify the responsibilities of different departments (e.g., purchasing, production) in managing variances.
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Learning Objectives
- Identify the responsibilities of different departments (e.g., purchasing, production) in managing variances.
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