Vito, Inc. had an unfavorable labor efficiency variance and an unfavorable materials quantity variance. Which department might be held accountable for these variances?
A) Engineering
B) Production only, because inefficient workers may use more materials than allowed.
C) Marketing.
D) Shipping.
E) Both Purchasing, because bad materials can harm labor efficiency and Production, because inefficient workers may use more materials than allowed.

Question

Quizplus · Accepted Answer

Both Purchasing and Production departments can be held accountable for these variances. Poor quality materials from Purchasing can lead to inefficiencies in labor, while inefficiencies in Production can lead to using more materials than necessary.

Vito, Inc Had an Unfavorable Labor Efficiency Variance and an Unfavorable