Rogillo, Inc. had an unfavorable labor efficiency variance and an unfavorable materials quantity variance. Which department might be held accountable for these variances?
A) Purchasing, because bad materials can harm labor efficiency.
B) Production, 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 can be held accountable for the unfavorable variances. If the materials purchased were of poor quality, they could affect the labor efficiency, causing problems in production. On the other hand, if there were inefficient workers, they could use more materials than allowed, leading to the materials quantity variance. Therefore, both departments can be responsible for the variances.