) Saskatoon Company uses two raw materials, A and B, in the manufacture of its only product: Zizbo. The materials are very close substitutes. The standard proportions for the manufacture of a unit of Zizbo are 2 units of A and 3 units of B. The unit standard prices of A and B are $10 and $8, respectively. During the month of August, the company used 450 units of A and 750 units of B to produce 230 units of Zizbo.
-Which one of the following variances is MOST controllable by a production supervisor?
A) Materials price variance.
B) Materials quantity variance.
C) Fixed overhead volume variance.
D) Variable overhead spending variance.

Question

Quizplus · Accepted Answer

The materials quantity variance is the most controllable by a production supervisor as they are responsible for managing the materials usage during the production process. By controlling the amount of materials used, the production supervisor can keep the materials quantity variance within budgeted limits. The other variances listed, such as materials price variance, fixed overhead volume variance, and variable overhead spending variance, may be influenced by factors outside of the production supervisor's control.

) Saskatoon Company Uses Two Raw Materials, a and B