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Unformatted text preview: has no control, such as the OPEC nations' oil price increases, may cause an unfavorable variance. There are also times when a production department may be responsible for the price variance. This may occur when a rush order forces the company to pay a higher price for the materials. The starting point for determining the cause(s) of an unfavorable materials quantity variance is in the production department . If the variances are due to inexperienced workers, faulty machinery, or carelessness, the production department is responsible. However, if the materials obtained by the purchasing department were of inferior quality, then the purchasing department is responsible....
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- Fall '11