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Santiago, one of the accountants for a company, was reviewing the direct materials purchases budget for the production line and noticed a $15\%$ increase in the budget compared to the prior period budget. What could have caused the increase in the direct materials purchases budget, and who should he talk to about the cause?

O The increase in the direct materials purchases budget could have been caused by an increase in manufacturing overhead

costs, and he should talk to the plant manager who provided the budget.

O The increase in the direct materials purchases budget could have been caused by an increase in production direct labor

costs, and he should talk to the production manager who prepared the budget.

O The increase in the direct materials purchases budget could have been caused by a decrease in the quantity of the direct

materials needed, and he should talk to the production manager who prepared the budget.

O The increase in the direct materials purchasing budget could have been caused by an increase in the purchasing price, and he should talk to the purchasing manager who provided the budget.

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