Quantity Variance is the variance due to a difference in the standard quantity and actual quantity of materials used inproduction. Price Variance is the difference between the standard cost and the actual cost for the actual quantity of material purchased. Labor efficiency variance is the difference between the standard direct labor hours allowed and actual direct labor hours used in production. To determine: The person responsible for materials price variance, quantity variance and labor efficiency variance Solution: The Purchasing manager is responsible for the material price variance as he is the one who negotiates and purchases the material at a price. Production manager is responsible for the material quantity variance and the labor efficiency variance as he is the one who is in charge of the production and is responsible for how efficiently the material and labor are used in production. Conclusion: Thus, the departments responsible for materials price variance, quantity variance and labor efficiency variance.

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