Final answer:
The production department can be responsible for a direct materials price variance in cases where their actions lead to purchasing materials at higher costs or not utilizing negotiated discounts properly.
Step-by-step explanation:
The question asks if the production department could be responsible for a direct materials price variance, and the answer is True. Normally, the purchasing department is responsible for material price variances because they negotiate and pay for the materials. However, there are instances where the production department can influence the price variance as well.
For example, if the production department uses materials in a rush order that requires purchasing materials at a higher price, or if they make unauthorized changes to material specifications that result in higher costs, they can cause a material price variance. Additionally, production might be accountable for the price variance if they fail to use negotiated discounts or preferred suppliers arranged by purchasing.