The Variance that Will Be Affected by Falling Egg Prices Discussion

I’m working on a accounting multi-part question and need an explanation and answer to help me learn.

In 2015, when the avian flu hit egg producers hard, there was a shortage of eggs. Egg prices increased dramatically. Over the years since 2015 however, egg production has ramped back up as egg producers have restocked their flocks of egg-laying chickens. There is now a glut of eggs, putting causing the price of eggs to greatly decrease.

Eggs are used in many products, including ice cream, cream pies, eggrolls, marshmallows, lollipops, meatloaf, and pasta. Kellogg’s® Eggo® waffles are among products that use eggs.

Fun fact: The average American eats 250 eggs per year, according to Business Insider (“10 things you never knew about eggs,” 3/3/2017.)

1. Which of the Eggo® waffle variances would be impacted by the drop in the price of eggs?
2. Would the drop in the price of eggs cause a favorable or unfavorable variance for Kellogg’s?
3. What is Kellogg’s likely to do to its standard(s) based on the current price of eggs? Which standard(s) would be impacted?