• The corporate office had budgeted Wendy's to sell 3,200 cheeseburgers during the week beginning August 20. Each cheeseburger was expected to contain 7 ounces of beef. During the week of August 20, the shop actually sold 3,600 cheeseburgers and used 26,200 ounces of beef. The standard cost of beef is $0.55 per ounce. The variance report from company headquarters showed an unfavorable materials usage variance of $495.
• Required:
  1. Determine if the materials usage variance was calculated correctly. If not, recalculate it.
  2. Provide three possible explanations for the materials usage variance identified in Requirement 1.