• The corporate office had budgeted McDonald's Smoothie Bar to sell 1,200 smoothies during the week beginning October 10. Each smoothie was expected to contain 8 ounces of fruit. During the week of October 10, the shop actually sold 1,500 smoothies and used 12,800 ounces of fruit. The standard cost of fruit is $0.60 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $480.
• Required:
  1. Verify if the materials usage variance is accurate. If not, recalculate it.
  2. Provide three independent reasons for the materials usage variance calculated in Requirement 1.