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

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