Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started