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?

Q&A Education