Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and freehome delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzassold and the number of deliveries made.The pizzeria's cost formulas appear below:FixedCost perMonthPizza ingredientsKitchen staffUtilitiesDelivery personDelivery vehicleEquipment depreciationRentMiscellaneous$ 6,210$ 760PizzasDeliveriesRevenuePizza ingredientsKitchen staffUtilitiesDelivery personDelivery vehicleEquipment depreciationRentMiscellaneous$ 780$ 520$ 2,170$ 880ActualResults2,110190$ 30,240$ 9,910$ 6,150$ 960$ 4941,016$ 520$ 2,170$ 880Cost perPizza$ 4.80$ 0.80$$ 0.20In November, the pizzeria budgeted for 2,010 pizzas at an average selling price of $14 per pizza and for 210 deliveries.Data concerning the pizzeria's actual results in November appear below:cost perDelivery$ 2.60$ 1.80Required:1. Compute the revenue and spending variances for the pizzeria for November. (Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts aspositive values.)Milano PizzaRevenue and Spending VariancesFor the Month Ended November 30ActualResultsRevenue and SpendingVariancesFlexibleBudget

The variance seems to be the difference between the actual and budgeted results within the budgetary…

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out ar home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Cost per Month Pizza Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,210 $ 760 $ 780 $ 520 $ 2,170 $ 880 $ 4.80 $ 0.80 $ 0.20 Cost per Delivery $ 2.60 $ 1.80 In November, the pizzeria budgeted for 2,010 pizzas at an average selling price of $14 per pizza and for 210 del

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out ar home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Cost per Month Pizza Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,210 $ 760 $ 780 $ 520 $ 2,170 $ 880 $ 4.80 $ 0.80 $ 0.20 Cost per Delivery $ 2.60 $ 1.80 In November, the pizzeria budgeted for 2,010 pizzas at an average selling price of $14 per pizza and for 210 del

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 13E: Carleigh, Inc., is a pork processor. Its plants, located in the Midwest, produce several products...

See similar textbooks

Similar questions

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 Costper Month Cost perPizza Cost perDelivery Pizza ingredients $ 4.60 Kitchen staff $ 6,170 Utilities $ 740 $ 0.60 Delivery person $ 3.40 Delivery vehicle $ 760 $ 1.60 Equipment depreciation $ 504 Rent $ 2,130 Miscellaneous $ 860 $ 0.20 In November, the pizzeria budgeted for 1,950 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 2,050 Deliveries 170 Revenue $ 41,680 Pizza…
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 $ 4.90 Kitchen staff $ 6,010 Utilities $ 660 $ 0.80 Delivery person $ 2.60 Delivery vehicle $ 680 $ 2.00 Equipment depreciation $ 440 Rent $ 1,970 Miscellaneous $ 780 $ 0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria’s actual results in November were as follows: Actual Results Pizzas 1,810 Deliveries 170 Revenue $ 36,800 Pizza ingredients $ 8,110 Kitchen staff $ 5,950 Utilities $ 910 Delivery person $…
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 $ 4.60 Kitchen staff $ 5,950 Utilities $ 630 $ 0.50 Delivery person $ 3.30 Delivery vehicle $ 650 $ 1.70 Equipment depreciation $ 416 Rent $ 1,910 Miscellaneous $ 750 $ 0.25 In November, the pizzeria budgeted for 1,620 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 1,720 Deliveries 220 Revenue $ 29,810 Pizza ingredients $ 7,570 Kitchen staff $ 5,890 Utilities $ 895 Delivery person $ 726…
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 Costper Month Cost perPizza Cost perDelivery Pizza ingredients $ 4.70 Kitchen staff $ 5,970 Utilities $ 640 $ 0.60 Delivery person $ 3.40 Delivery vehicle $ 660 $ 1.80 Equipment depreciation $ 424 Rent $ 1,930 Miscellaneous $ 760 $ 0.06    In November, the pizzeria budgeted for 1,650 pizzas at an average selling price of $18 per pizza and for 250 deliveries. Data concerning the pizzeria’s actual results in November appear below:    Actual Results Pizzas 1,750 Deliveries 230 Revenue $ 32,080…
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 Costper Month Cost perPizza Cost perDelivery Pizza ingredients $ 4.40 Kitchen staff $ 5,910 Utilities $ 610 $ 0.30 Delivery person $ 3.10 Delivery vehicle $ 630 $ 1.50 Equipment depreciation $ 400 Rent $ 1,870 Miscellaneous $ 730 $ 0.15   In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 1,660 Deliveries 200 Revenue $ 25,450 Pizza…
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 MonthCost per PizzaCost per DeliveryPizza ingredients $ 4.10 Kitchen staff$ 6,290  Utilities$ 800$ 0.20 Delivery person  $ 3.00Delivery vehicle$ 820 $ 2.20Equipment depreciation$ 552  Rent$ 2,250  Miscellaneous$ 920$ 0.10  In November, the pizzeria budgeted for 2,130 pizzas at an average selling price of $18 per pizza and for 250 deliveries. Data concerning the pizzeria’s actual results in November were as follows:  Actual ResultsPizzas2,230Deliveries230Revenue$ 40,880Pizza ingredients$ 10,630Kitchen staff$ 6,230Utilities$ 980Delivery person$ 690Delivery vehicle$ 1,024Equipment depreciation$ 552Rent$ 2,250Miscellaneous$ 904 Required:  1.…
Lucerne pizza is a small neighborhood pizzeria that has a small area for in-store dining as well offering takeout 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. Data concerning the pizzeria’s costs appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients ................ $5.00 Kitchen staff ...................... $5,800 Utilities .............................. 520 $.10 Delivery person .................. $2.90 Delivery vehicle .................. 680 $2.10 Equipment depreciation ...... 387 Rent .................................. 1,730 Miscellaneous ..................... 730 $.01 In October, the pizzeria budgeted for 2,000 pizzas at an average selling price of $13.00 per pizza and for 190 deliveries. Data concerning the pizzeria’s…
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offeringtake-out and free home delivery services. The pizzeria’s owner has determined that the shop has two majorcost drivers—the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria’scosts appear below:Fixed Cost Cost per Cost perper Month Pizza DeliveryPizza ingredients ............... $3.80Kitchen staff ....................... $5,220Utilities ............................... $630 $0.05Delivery person .................. $3.50Delivery vehicle ................. $540 $1.50Equipment depreciation ..... $275Rent ................................... $1,830Miscellaneous .................... $820 $0.15In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizzaand for 180 deliveries.Data concerning the pizzeria’s operations in November appear below:Actual ResultsPizzas ................................... 1,240Deliveries…
The Farm House restaurant makes their own bread to serve in their restaurant. They have been approached by a local bakery offering to make the bread for them. The restaurant has two choices:1) continue making the bread in-house, or 2) buy it from the local bakery.The Farm House head chef estimated the variable cost of making each loaf of bread to include the following:Sales prices and variable costs are as follows: $0.69 of ingredients, $0.25 of variable overhead, and direct labor costs to knead and form the loaves of $0.70. Allocating fixed overhead is based on direct labor. The Farm House assigns a fixed overhead cost of $1.07 per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.75 per loaf.1. What is the full product unit cost of making bread in-house?The Farm House Direct Materials Direct Labor Variable manufacturing overhead Fixed manufacturing overhead Cost per loaf of bread 2. Should the restaurant bake the bread…
Chloe’s Cafe bakes croissants that it sells to local restaurants and grocery stores. The average costs to bake the croissants are $0.70 for 2,600 and $0.65 for 5,200, If the total cost function for croissants is linear, what will be the average cost to bake 4,400?
Luna Café bears the following costs: The cost of oil for a deep fryer Wages of the workers of the responsible center for submitting customers' requests The cost of TV advertising costumes for The Café. The cost of the children's games which are given free of charge with the children's meals The cost of the posters for the advertisement for the new offer "Three fish burgers at 6.30 dinars" Costs of frozen onions and French fries The salaries of food professionals who make new sandwiches for the restaurant chain The cost of wrapping meals that customers requested and were unable to finish their meals in the restaurant Required: Match each cost element (1-8) as a business function in the value chain which is as follows: distribution Production customers service Marketing research and development Product and process design
Q. Radhuni, a traditional bangla restaurant, incurs the following costs: a. Salaries of the food specialists who create new Biriyani for the restaurant chainb. Cost of “to-go” bags requested by customers who could not finish their meals in therestaurantRequired: Just Classify each of the cost items (a,b) as one of the business functions of the value chain