Question

Who is generally responsible for the materials price variance? The materials quantity variance? The labor efficiency variance?

Answer 1

a)Material price variance:

In case of material price variance usually the purchasing manager is held responsible in the organisation due to price variances related to material.

b)Material quantity variance:

In this case , generally production manager will be held responsible primarily due to inefficient use of material quantity to the standard proportion.

C)Labour efficiency variance:

In this situation, supervisor is purely held responsible for any labour efficiency variance that may arise due to over or under efficiency variance since he ia the only person who supervises the labour in working with organisation.