Question
Catrina Krause is the manager of the Gordon Bagel Shop. The corporate office had budgeted her store to sell 3,700 ham sandwiches during the week
Catrina Krause is the manager of the Gordon Bagel Shop. The corporate office had budgeted her store to sell 3,700 ham sandwiches during the week beginning July 17. Each sandwich was expected to contain 7 ounces of ham. During the week of July 17, the store actually sold 4,100 sandwiches and used 29,300 ounces of ham. The standard cost of ham is $0.16 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $544. Ms. Krause thought the variance was too high, but she had no accounting background and did not know how to register a proper objection. |
Required: | |
a. | Determine the material usage variance. (Indicate the effect of the variance by selecting favorable (F) or unfavorable (U), and select "None" if there is no effect (i.e., zero variance).) |
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