Coulter Manufacturing Company had an unfavourable labour efficiency variance and an unfavourable materials quantity variance. Which department in Coulter might be held accountable for these variances?

Question

Quizplus · Accepted Answer

The production department is responsible for both labour efficiency and materials quantity. They are responsible for ensuring that the labour force is working efficiently, and that materials are used in the correct quantities. Therefore, if there are variances in both of these areas, it is likely that the production department is responsible.

Coulter Manufacturing Company Had an Unfavourable Labour Efficiency Variance and an Unfavourable