ECONOMICS

Detailed explanation-1: -Which department is customarily held responsible for an unfavorable materials quantity variance? A. Quality control.

Detailed explanation-2: -The production department is typically responsible for an unfavorable material quantity variance. This is because the production department is responsible for ordering and using the materials in question.

Detailed explanation-3: -The purchase price variance is the difference between the standard and actual cost per unit of the direct materials purchased, multiplied by the standard number of units expected to be used in the production process. This variance is the responsibility of the purchasing department.

Detailed explanation-4: -The labor efficiency variance generally is also the responsibility of the production managers and supervisors. 8-6 The materials price variance can be computed either when materials are purchased or when they are placed into production. It is better to compute the variance when materials are purchased.