• The corporate office had budgeted Chipotle Grill to sell 1,500 burritos during the week beginning May 5. Each burrito was expected to contain 8 ounces of beans. During the week of May 5, the shop actually sold 1,800 burritos and used 14,500 ounces of beans. The standard cost of beans is $0.25 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $325.
• 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.