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Apart from Material price variance all the other variances are unfavourable; so a corrective action has to be taken first for the improvement of labour

Apart from Material price variance all the other variances are unfavourable; so a corrective action has to be taken first for the improvement of labour efficiency and labour rate and then for material quantity variance. The variance problem should be reported to the appropriate managerial persons; material quantity variance should be reported to the purchase manager, labour rate variance should be reported to Human resource manager and labour efficiency variance should be reported to the supervisor. They should be held responsible because they are directly responsible for all these variances.The purchase manager is responsible for adequate purchase of materials for meeting the production requirements as they get all the data regarding the requirements of materials from the production department. Human resource manager is responsible for getting the required staff for a job at reasonable prices. Supervisor is responsible for getting the work done efficiently from the workers

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