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A firm has two ingredients inputs for its finished goods trail mix units: peanuts and candy. Typically the firm uses 12 kilograms of peanuts for

A firm has two ingredients inputs for its finished goods trail mix units: peanuts and candy. Typically the firm uses 12 kilograms of peanuts for every 3 kilograms of candy.

  • Peanut standard price is $2.00 per kilogram
  • Candy standard price is $6.00 per kilogram
  • Peanut actual price is $3.00 per kilogram
  • Candy actual price is $5.00 per kilogram

This period, the firm instead actually used 90 kilograms of peanuts and 10 kilograms of candy (producing a total of 100 kilograms of trail mix).

What is the firm's mix variance for trail mix this period (round to nearest cent if necessary)?

a.

$40 unfavorable

b.

$20 unfavorable

c.

$20 favorable

d.

$40 favorable

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