Question
The purchasing manager of the Clampett Company ordered materials of lower quality in an effort to economize on price. However, due to the rush order
The purchasing manager of the Clampett Company ordered materials of lower quality in an effort to economize on price. However, due to the rush order request from the production manager, the materials were shipped by airfreight at a rate much higher than ordinarily charged for shipment by truck, resulting in an unfavorable materials price variance. The lower quality materials proved to be unsuitable on the production line and resulted in an unfavorable materials quantity variance due to the excessive waste. In this particular situation, who should be held responsible for (1) the price variance and (2) the quantity variance?
Group of answer choices
(1) Purchasing Managaer for Price Variance; (2) Purchasing Manager for Quantity Variance
(1) Purchasing Managaer for Price Variance; (2) Production Manager for Quantity Variance
(1) Production Managaer for Price Variance; (2) Purchasing Manager for Quantity Variance
(1) Production Managaer for Price Variance; (2) Production Manager for Quantity Variance
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