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Benson Fruit Basket Company makes baskets of assorted fruit. The standard and actual costs of oranges used in each basket of fruit follow. StandardActualAverage number
Benson Fruit Basket Company makes baskets of assorted fruit. The standard and actual costs of oranges used in each basket of fruit follow.
StandardActualAverage number of oranges per basket5.407.00Price per orange $0.30 $0.25Cost of oranges per basket$1.62$1.75
Benson actually produced 25,300 baskets.
Required
- Determine the materials price variance and indicate whether it is favorable (F) orunfavorable (U).
- Determine the materials usage variance and indicate whether it is favorable (F) orunfavorable (U).
(For all requirements, Select "None" if there is no effect (i.e., zero variance).)
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