• The corporate office had budgeted Auntie Anne's to sell 1,600 pretzels during the week beginning March 15. Each pretzel was expected to contain 3 ounces of flour. During the week of March 15, the shop actually sold 1,800 pretzels and used 5,800 ounces of flour. The standard cost of flour is $0.15 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $90.
• Required:
  1. Determine if the materials usage variance was calculated correctly. If not, recalculate it.
  2. Offer three potential explanations for the materials usage variance identified in Requirement 1.