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Materials and labor variances are due to differences between the actual costs incurred and the budgeted costs. The price $($or rate$)$ variance is computed by comparing the actual cost with the flexible budget amount that should have been incurred to acquire the actual quantity of resources. The quantity $($or efficiency$)$ variance is computed by comparing the flexible budget amount that should have been incurred to acquire the actual quantity of resources with the flexible budget amount that should have been incurred to acquire the standard quantity of resources.

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Who has the main responsibility for a materials price variance?

multiple choice

production manager

purchasing manager