ECONOMICS

Detailed explanation-1: -The variance that is most useful in assessing the performance of the purchasing department manager is: the materials price variance. The production department should generally be responsible for material price variances that resulted from: rush orders arising from poor scheduling.

Detailed explanation-2: -Ideal standards should be used for forecasting and planning. 4. In general, the purchasing agent is responsible for the material price variance.

Detailed explanation-3: -In general, the production manager is responsible for the materials price variance. An unfavorable materials quantity variance occurs when the actual quantity used in production is less than the standard quantity allowed for the actual output of the period.

Detailed explanation-4: -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-5: -Purchasing. The purchasing department should ordinarily be held responsible for an unfavorable materials price variance because that department ordinarily has most control over the price.