Question

The ABC Company required 10,000 direct labor hours in production. The standard allowed for 9,000 hours at a pay rate of $18 per hour. If the company had an unfavorable direct labor rate variance of $6,000 that was largely caused by scheduling high skill-level worksers to perform low-skill level activities, who would most likely be held accountable for the variance?

A. the production department manager

B.the purchasing department manager

C. the personnel department manager

D. the sales manager

Answer 1

Option c

Personnel department manager

Generally for all the production related variances, production department manager shall be held responsible. But in the given case the variance is caused due to wrong scheduling of works that is is high skill level workers to perform low skill level works.

Scheduling of works for division of works shall be allocated by human resource department or personnel department an production manager follow the appointment order given by personal department manager.

As a result in the given case due to the the situation held out, personal department manager shall be held responsible.