• The corporate office had budgeted Pizza Hut to sell 1,600 large pizzas during the week beginning July 5. Each pizza was expected to contain 12 ounces of cheese. During the week of July 5, the shop actually sold 1,900 pizzas and used 22,800 ounces of cheese. The standard cost of cheese is $0.45 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $540.
• Required:
  1. Verify the accuracy of the materials usage variance. If not accurate, recalculate it.
  2. Suggest three potential causes for the materials usage variance calculated in Requirement 1.