Heidi owns and operates The Dripolater, a coffee shop in the mountains of North Carolina. She uses special filtered water for her coffee. Each 8-ounce cup of coffee contains a standard quantity of 8 ounces of water. The standard price for the water is $2.25 per gallon. During the June tourist season, Heidi purchased and used 4,700 gallons of water (16 cups = 1 gallon). Heidi paid $2.25 per gallon and served 9,000 cups of coffee in June. Compute The Dripolater's direct material quantity variance for June. O $450 F O $330 U O $450 U O $330 F

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for …

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on t…