INTRO MGRL ACCT LL W CONNECT
8th Edition
ISBN: 9781266376771
Author: BREWER
Publisher: MCG
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Textbook Question
Chapter 9, Problem 19P
More than One Cost Driver
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as 11 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 pizzerias cost formulas appear below:
In November, the pizzeria budgeted for 1.200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries.
Date concerning the pizzeria’s actual results in Noverber appear below:
Required:
1. Compute the revenue and spending variances for the pizzeria for November.
(Hint: Refer to Exhibit 9−6.)
2. Explain the revenue and spending variances.
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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 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…
Chapter 9 Solutions
INTRO MGRL ACCT LL W CONNECT
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Ch. 9.A - Comprehensive Standard Cost Variances Flandro...Ch. 9.A - Selection of a Denominator: Overhead Analysis:...Ch. 9.B - Standard Cost Flows: Income Statement Preparation...Ch. 9.B - Standard Cost Flows: Income Statement Preparation...Ch. 9.B - Standard Cost Flows Bowen Company manufactures one...Ch. 9.B - Standard Cost Flows Hartwell Company manufactures...Ch. 9.B - Transaction Analysis; Income Statement Preparation...Ch. 9.B - Transaction Analysis; Income Statement Preparation...Ch. 9 - What is a static planning budget?Ch. 9 - What is a flexible budget and how does it differ...Ch. 9 - What are some of the possible reasons that actual...Ch. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is a revenue variance and what does it mean?Ch. 9 - What is a spending variance and what does it mean?Ch. 9 - What does a flexible budget enable that a simple...Ch. 9 - How does a flexibe budget based on the cost...Ch. 9 - Prob. 9QCh. 9 - Why are separate price and quantity variances...Ch. 9 - Who is generally responsible for the materials...Ch. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Our workers are all under labor contracts:...Ch. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - Prob. 17QCh. 9 - The Excel worksheet form that appears below is to...Ch. 9 - Prob. 2AECh. 9 - Preble Company manufactures one product. Its...Ch. 9 - Prob. 2F15Ch. 9 - Preble Company manufactures one product. Its...Ch. 9 - Prob. 4F15Ch. 9 - Prob. 5F15Ch. 9 - Prob. 6F15Ch. 9 - Preble Company manufactures one product. Its...Ch. 9 - Prob. 8F15Ch. 9 - Prob. 9F15Ch. 9 - Prob. 10F15Ch. 9 - Prob. 11F15Ch. 9 - Preble Company manufactures one product. Its...Ch. 9 - Prob. 13F15Ch. 9 - Preble Company manufactures one product. Its...Ch. 9 - Preble Company manufactures one product. Its...Ch. 9 - Prepare a Flexible Budget Puget Sound Divers is a...Ch. 9 - Prepare a Report Shong Revenue and Spending...Ch. 9 - Prepare a Flexible Budget with More Than One Cost...Ch. 9 - Direct Materials Variances Bandar Industries...Ch. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Planning Budget Lavage Rapide is a Canadian...Ch. 9 - EXERCISE 98 Flexible Budget L091 Refer to the data...Ch. 9 - Prepare a Report Showing Revenue and Spending...Ch. 9 - Direct Labor and Variable Manufacturing Overhead...Ch. 9 - Prob. 11ECh. 9 - Working with More Than One Cost Driver The...Ch. 9 - Direct Materials and Direct Labor Variances Huron...Ch. 9 - Direct Materials Variances Refer to the data in...Ch. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17ECh. 9 - Comprehensive Variance Analysis Miller Toy Company...Ch. 9 - More than One Cost Driver Milano Pizza is a small...Ch. 9 - Basic Variance Analysis: the Impact of Vanances on...Ch. 9 - Multiple Products. Materials, and Processes...Ch. 9 - Variance Analysis In a Hospital John Fleming,...Ch. 9 - Flexible Budgets and Spending Variances You have...Ch. 9 - Comprehensive Variance Analysis Marvel Parts....Ch. 9 - Direct Materials and Direct Labor Variances:...Ch. 9 - Comprehensive Variance Analysis Highland Company...
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