A labour efficiency variance resulting from the use of poor quality materials should be charged to which/whom?
A) The production manager.
B) The purchasing agent.
C) Manufacturing overhead.
D) The engineering department.

Question

Quizplus · Accepted Answer

The purchasing agent is responsible for sourcing and selecting the materials that are used in production. If poor quality materials are used and result in a labour efficiency variance, it is the purchasing agent's responsibility to ensure that the materials meet the required standards. The variance should be charged to the purchasing agent to incentivize them to make better material selections in the future.

A Labour Efficiency Variance Resulting from the Use of Poor