Kelsey owns a fruit smoothie shop at the local mall. Each smoothie requires pound of mixed

Kelsey owns a fruit smoothie shop at the local mall. Each smoothie requires ¼ pound of mixed berries, which are expected to cost \($4\) per pound during the summer months. During the month of June, Kelsey purchased and used 1,300 pounds of mixed berries at a cost of

\($3.75\) per pound. Kelsey’s shop sold 5,000 smoothies during the month.

1. Calculate the DM price variance. Is the variance favorable or unfavorable?

2. Calculate the DM quantity variance (also known as a DM efficiency variance). Is the variance favorable or unfavorable?

3. Calculate the total DM variance. Is the variance favorable or unfavorable?