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

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
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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
Transcribed Image Text: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
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