Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started