1. DAvocados main product has the following standard costs for materials:

0.4 lb. of avocado @ $0.85/lb.

0.3 lb. of chocolate @ $1.15/lb.

1 piece plastic cup with lid @ $0.03/piece

For the month of November, the company produced the following results:

Units produced: 15,000

Material	Quantity used	Total cost
Avocado	5,950 lbs.	$5,555
Chocolate	4,600 lbs.	$6,900
Plastic cup	15,008	$460

Required:

1. Show calculations for the direct materials price and quantity variances for each material. Briefly identify at least one reasonable explanation for each of these variances for each material.
2. Which of the six variances you calculated in part a is most likely to require further investigation? Explain your answer.