Southside Pizzeria wants to improve its ability to manage the ingredient costs associated with making and selling its pizzas. For the month of June, the company plans to make 1,000 pizzas. It has created a planning budget that includes a cost formula for mozzarella cheese of $2.40 per pizza. At the end of June, Southside actually sold 1,100 pizzas and the actual cost of the cheese that it used during the month was $2,632. Required: What is the mozzarella cheese activity variance for June? What is the mozzarella cheese spending variance for June? Assume that the company establishes a price standard of $0.30 per ounce for mozzarella cheese and a quantity standard of eight ounces of cheese per pizza. Also, assume that Southside actually used 9,400 ounces of cheese during the month to make 1,100 pizzas. What is the materials price variance for mozzarella cheese for June? What is the materials quantity variance for mozzarella cheese for June? What is the materials spending variance for mozzarella cheese for June?
Activity variance for June = 2.4*(1100-1000) = $240 Unfavoravle | ||||||
Spending variance for June = 2632-(1100*2.4)= $8 Favorable | ||||||
2 | ||||||
Materials price variance = 2632-(9400*0.3)= $188 Favorable | ||||||
Materials quantity variance = 0.3*(9400-1100*8)= $180 Unfavorable | ||||||
Materials spending variance = 2632-(1100*0.3*8)= $8 Favorable | ||||||
Southside Pizzeria wants to improve its ability to manage the ingredient costs associated with making and...
Southside Pizzeria wants to improve its ability to manage the ingredient costs associated with making and selling its pizzas. For the month of June, the company plans to make 1,000 pizzas. It has created a planning budget that includes a cost formula for mozzarella cheese of $2.40 per pizza. At the end of June, Southside actually sold 1,100 pizzas and the actual cost of the cheese that it used during the month was $2,632. Required: 1. What is the mozzarella...
Southside Pizzeria wants to improve its ability to manage the ingredient costs associated with making and selling its pizzas. For the month of June, the company plans to make 1,000 pizzas. It has created a planning budget that includes a cost formula for mozzarella cheese of $2.40 per pizza. At the end of June, Southside actually sold 1,100 pizzas and the actual cost of the cheese that it used during the month was $2,632. Required 1. What is the mozzarella...
Problem Activity Variance, Spending Variance, Materials Price Variance, Materials Quantity Variance Southside Pizzeria wants to improve its ability to manage the ingredient costs associated with making and selling its pizzas. For the month of June, the company plans to make 1,000 pizzas. It has created a planning budget that includes a cost formula for mozzarella cheese of $2.40 per pizza. At the end of June, Southside actually sold 1,100 pizzas and the actual cost of the cheese that it used...
Integration Exercise 1 Activity Variance, Spending Variance, Materials Price Variance, Materials Quantity Variance [LO9-1, LO9-2, LO9-3, LO10-1] Southside Pizzeria wants to improve its ability to manage the ingredient costs associated with making and selling its pizzas. For the month of June, the company plans to make 1,000 pizzas. It has created a planning budget that includes a cost formula for mozzarella cheese of $2.40 per pizza. At the end of June, Southside actually sold 1,100 pizzas and the actual cost...
Edwardsville Pizzeria makes one of the most delicious pepperoni pizzas in their geographical area. Since their pizzas are hand made to order but they must compete with many of the large pizza chains on the basis of price, they want to make sure that they very tightly control the costs to make a pizza without sacrificing any quality in the process. They have established the following standards for operations. EDWARDSVILLE PIZZERIA PEPPERONI PIZZA STANDARDS Direct Materials (Dough, Sauce, Pepperoni) 1...
managerial accounting
Edwardsville Pizzeria makes one of the most delicious pepperoni pizzas in their geographical area. Since their pizzas are hand made to order but they must compete with many of the large pizza chains on the basis of price, they want to make sure that they very tightly control the costs to make a pizza without sacrificing any quality in the process. They have established the following standards for operations. EDWARDSVILLE PIZZERIA PEPPERONI PIZZA STANDARDS Direct Materials (Dough, Sauce,...
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