The purchasing agent of the Clampett Company ordered materials of lower quality in an effort to economize on price and in response to the demands of the production manager due to a mistake in production scheduling.The materials were shipped by airfreight at a rate higher than that ordinarily charged for shipment by truck,resulting in an unfavorable materials price variance.The lower quality material proved to be unsuitable on the production line and resulted in excessive waste.In this situation,who should be held responsible for the materials price and quantity variances?

Question

Quizplus · Accepted Answer

The materials price variance is the responsibility of the production manager because the unfavorable variance was due to the demands made by the production manager.The materials quantity variance is the responsibility of the purchasing agent because the purchasing agent was responsible for ordering the lower quality material.

The Purchasing Agent of the Clampett Company Ordered Materials of Lower