1) Activity variance = (1000-1100)*2.4 = $240 U
2) Spending variance = (1100*2.4)-2632 = 8 F
3) Material price variance = (0.30*9400)-2632 = $188 F
Material quantity variance = (1100*8-9400)*0.30 = 180 U
Total material variance = (1100*.30*8)-2632 = $8 F
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: What is the mozzarella cheese...
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...
Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (16 lbs. @ $5 per lb.) $80 Direct labor (4 hrs. @ $15 per hr.) $60 During June the company incurred the following actual costs to produce 9,000 units. Direct materials (146,700 lbs. @ $4.75 per lb.) $696,825 Direct labor (40,300 hrs. @ $15.10 per hr.). $608,530 AH = Actual Hours SH = Standard Hours AR = Actual...
Chap 21 Homework Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures Direct materials (15 lbs. 33 per lb.) Direct labor (3 hrs. $14 per hr.) 20 points During June the company incurred the following actual costs to produce 8,400 units Skipped Direct materiais (128,500 lbs. $2.75 per 10.) Direct labor (28,600 hrs. $14.15 per hr.). $353,375 404.600 Book AH = Actual Hours SH = Standard Hours AR =...
Reed Corp, has set the following standard direct materials and direct labor costs per unit for the product it manufactures. Direct materials (16 lbs. @ 54 per lb.) Direct labor (4 hrs. $15 per hr.) During June the company incurred the following actual costs to produce 8.400 units Direct materials (136.700 lbs. 33.70 per lb.) Direct labor (37,200 hrs. $15.10 per hr.). $505,790 561, 720 AH = Actual Hours SH Standard Hours AR Actual Rate SR Standard Rate AO -...
Rip Tide Company manufactures surfboards. Its standard cost information follows: Standard Quantity 15 sq. ft. 10 hrs. Standard Price (Rate) $5 per sq. ft. $15 per hr. Standard Unit Cost $ 75.00 150.89 Direct materials (fiberglass) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($24,600 + 300 units) 10 hrs. $ 6 per hr. 60.00 80.00 Rip Tide has the following actual results for the month of June 323 Number of units produced and sold...
Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Standard Quantity 1.70 lbs 1.70 hrs. Standard Price (Rate) $ 1.8e per lb. $10.00 per hr. Standard Unit Cost $ 3.06 17.00 Direct materials (clay) Direct labor Variable manufacturing overhead (based on direct labor hours) Fixed manufacturing overhead ($346,500.00 165,808.88 units) 1.70 hrs. $ 1.40 per hr. 2.38 2.10 Barley Hopp had the following actual results last year: Number of units produced and sold Number of pounds...
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. The pizzeria’s cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.30 Kitchen staff $ 6,330 Utilities $ 820 $ 0.40 Delivery person $...