Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Holiday Foods is famous for its frosted fruit cake. The main ingredient of the cake is driedfruit, which Holiday purchases by the pound. Inaddition, the

Holiday Foods is famous for its frosted fruit cake. The main ingredient of the cake is driedfruit, which Holiday purchases by the pound. Inaddition, the production requires a certain amount of direct labor. Holiday uses a standard costsystem, and at the end of the firstquarter, there was a favorable direct labor efficiency variance. Which of the following is a logical explanation for thatvariance?

A. The cost of workers’ medical insurance plans jumped up dramatically during the quarter.

B. The purchasing manager was able to secure a volume discount on driedfruit, purchasing the fruit for less than the amount set by standard.

C. The production staff changed the work flow process so that production required fewer direct labor hours.

D. The factory lost two experienced workers at the beginning of the quarter, and their replacements wasted a large amount of direct materials during their training period.

Step by Step Solution

3.58 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

C The production staff changed the work flow process so that productio... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Optics

Authors: Eugene Hecht

5th edition

133977226, 133979121, 978-0133977226

More Books

Students also viewed these Accounting questions

Question

13. What are two mechanisms by which CCK increases satiety?

Answered: 1 week ago