The cost of avocados is rising. For example, the price of a $20-$pound box of avocados from the state of Avocado prices from Michoac$$n state in Mexico has jumped to $$38$ from $$21,$ which is an $81\%$ increase. The current price of avocados is the highest price on record in data that goes back to $1998.$

Wholly Guacamole, a brand owned by MegaMex Foods, is made largely from avocados. Wholly Guacamole's Classic Guacamole is made from more than $98\%$ avocados.

Review the tutorial video on variance analysis.

What would be the most likely impact, if any, on the direct material price variance for Wholly Guacamole's Classic Guacamole from the increase in the cost of avocados?

A$.$ The direct material putce variance would not be impacted.

B$.$ The most likely impact on the direct materials price variance cannot be predicted.

C$.$ The direct material price variance would be unfavorable.

D$.$ The direct material price variance would be favorable.

What would be the impact, if any, on the direct material quantity variance for Wholly Guacamole's Classic Guacamole from the increase in the cost of avocados?

A$.$ The direct material quantity variance would be unfavorable.

B$.$ The direct material quantity variance would be favorable.

C$.$ The direct material quantity variance would not be impacted.

D$.$ The most likely impact on the direct materials quantity variance cannot be predicted.