Question: Kelton Corp has calculated its direct materials price and quantity

Kelton Corp. has calculated its direct materials price and quantity variances to be $500 favorable and $800 unfavorable, respectively. Kelton’s production manager believes that these variances indicate that the purchasing department is doing a good job but production is doing a poor job.
Explain whether the production manager’s conclusions are correct.




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  • CreatedFebruary 27, 2015
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