• The corporate office had budgeted Starbucks Pastry Shop to sell 4,000 croissants during the week beginning September 15. Each croissant was expected to contain 2 ounces of butter. During the week of September 15, the shop actually sold 4,500 croissants and used 9,500 ounces of butter. The standard cost of butter is $0.50 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $500.
• Required:
  1. Determine if the variance is calculated correctly. If not, provide the correct calculation.
  2. Suggest three potential reasons for the materials usage variance found in Requirement 1.