There was favorable direct labor efficiency variance

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Reference no: EM131266443

Holiday Foods is famous for its frosted fruit cake. The main ingredient of the cake is dried? fruit, which Holiday purchases by the pound. In? addition, the production requires a certain amount of direct labor. Holiday uses a standard cost? system, and at the end of the first? quarter, there was a favorable direct labor efficiency variance. Which of the following is a logical explanation for that? variance?

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 dried? fruit, 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.

Reference no: EM131266443

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