2. Tom owns a fruit smoothie shop at the local mall. Each smoothie requires pound of mixed berries, which are expected to cost $4 per pound during the summer months. During the month of June, Tom purchased and used 1,300 pounds of mixed berries at a cost of $3.75 per pound. Toms shop sold 5,000 smoothies during the month.

1) Calculate the DM price variance. Is the variance favorable or unfavorable?

2) Calculate the DM efficiency variance. Is the variance favorable or unfavorable?

3) Calculate the total DM variance. Is the variance favorable or unfavorable?