Question: A firm has two substitutable inputs (peanuts and candy) for its finished goods units (trail mix). Typically the firm uses 15 pounds of peanuts for
A firm has two substitutable inputs (peanuts and candy) for its finished goods units (trail mix). Typically the firm uses 15 pounds of peanuts for every 1 pound of candy.
Peanut standard price is $13.00 per pound
Candy standard price is $20.00 per pound
Peanut actual price is $14.00 per pound
Candy actual price is $19.00 per pound
During this period, the firm instead actually used 4,000 kilograms of peanuts and 400 kilograms of candy (producing a total of 4,400 kilograms of trail mix).
What is the firm's mix variance for trail mix this period (round to nearest cent if necessary)?
Group of answer choices
$625 unvaforable
$875 unfavorable
$875 favorable
$625 favorable
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
