Question

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

Answer 1

Consider the following explanation.

Step-by-step explanation:

The logical explanation for that​variance is "The purchasing manager was able to secure a volume discount on dried​ fruit, purchasing the fruit for less than the amount set by standard." As a consecuence of a previpous deal with the provider.