Delicious Food Products is famous for its frosted fruit cake.The main ingredient of the cake is dried fruit,which Delicious purchases by the pound.In addition,the production requires a certain amount of direct labor.Delicious uses a standard cost system,and at the end of the first quarter,there was a favorable labor efficiency variance.Which of the following would be a logical explanation for that variance?
A) The cost of workers' medical insurance plans jumped up dramatically during the quarter.
B) The factory lost two experienced workers at the beginning of the quarter,and their replacements wasted a large amount of materials during their training period.
C) The procurement manager was able to secure a volume discount on dried fruit,purchasing the fruit for less than the amount set by standard.
D) The production staff changed the work flow process so that production required fewer direct labor hours.
Correct Answer:
Verified
Q109: The production of a company was experiencing
Q110: Delicious Food Products is famous for its
Q112: The procurement manager was able to bring
Q113: The production of a company was experiencing
Q115: The production manager of a company,in an
Q117: SeaKist Marine Stores Company manufactures decorative fittings
Q118: The fixed overhead volume variance is essentially
Q118: The procurement manager was able to bring
Q119: A new factory manager was hired for
Q154: The fixed overhead cost variance measures the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents