70.2K
Verified Solution
Link Copied!
Baird Fruit Basket Company makes baskets of assorted fruit. The standard and actual costs of oranges used in each basket of fruit follow.
| | Standard | Actual |
| Average number of oranges per basket | | 5.10 | | | 6.80 | |
| Price per orange | $ | 0.30 | | $ | 0.25 | |
| Cost of oranges per basket | $ | 1.53 | | $ | 1.70 | |
|
Baird actually produced 25,200 baskets.
Required
-
Determine the materials price variance and indicate whether it is favorable (F) or unfavorable (U).
-
Determine the materials usage variance and indicate whether it is favorable (F) or unfavorable (U).
Answer & Explanation
Solved by verified expert
