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In Reviewing the Activities of the Mixing Department for the Month

Question 176

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In reviewing the activities of the Mixing Department for the month of June the manager of the department notices that there was an unfavorable materials price variance for the month and there was an unfavorable materials quantity variance. Under what circumstances if any can the responsibility for each variance be placed on (a) the purchasing department and (b) the production department?

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(a) Purchasing department. The investiga...

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