• The corporate office had budgeted Krispy Kreme Donut Shop to sell 5,000 donuts during the week beginning November 20. Each donut was expected to contain 3 ounces of flour. During the week of November 20, the shop actually sold 5,200 donuts and used 16,000 ounces of flour. The standard cost of flour is $0.25 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $250.
• Required:
  1. Check if the variance was calculated correctly. If not, recalculate the variance.
  2. Provide three potential causes for the materials usage variance found in Requirement 1.