Please Complete The Following Problems: Problem 11, Barberry
Please Complete The Following Problemsproblem 11 11 Barberry Incpr
Please complete the following problems: Problem 11-11 – Barberry, Inc Problem 11-12 – Landers Company Problem 11-13 – Topaz Company Problem 12-15 – Comparative Data Problem 12-16 – MacIntyre Fabrications Please answers the following question 75-150 words Why are separate price and quantity variances computed? Who is generally responsible for the materials price variance; the materials quantity variance; the labor efficiency variance?
Paper For Above instruction
The calculation of separate price and quantity variances in cost accounting serves to identify distinct sources of cost deviations from standard costs. Price variances analyze differences between actual purchase prices and standard prices, highlighting purchasing efficiency or supplier cost changes. Quantity variances examine discrepancies between actual and standard quantities used, indicating inefficiencies in production or material handling. Separating these variances enables management to pinpoint precise causes of cost fluctuations, facilitating targeted corrective actions.
Typically, the purchasing department is responsible for the materials price variance, as they negotiate procurement prices. The materials quantity variance is generally attributed to production managers, who oversee the use of materials during manufacturing processes. The labor efficiency variance is also under the purview of production management, as it reflects the efficiency of labor utilization. This clear delineation of responsibility enhances accountability and improves cost control by directing corrective measures to the appropriate departments.
References
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