If the labor quantity variance is unfavorable and the cause is inefficient use of direct labor the responsibility rests with the
A) sales department.
B) production department.
C) budget office.
D) controller's department.

Question

Quizplus · Accepted Answer

The production department is responsible for the efficient use of direct labor, so if the labor quantity variance is unfavorable due to inefficient use, the responsibility would lie with this department. The sales department is not responsible for labor usage, and the budget office and controller's department are not directly responsible for day-to-day production activities.

If the Labor Quantity Variance Is Unfavorable and the Cause