8.8.12

Analyze Adventure Parks staffing budget

Adventure Park is a large theme park. Staffing for the theme park involves many different labor classifications, one of which is the parking lot staff. The parking lot staff collects parking fees, provides directions, and operates trams. The staff size is a function of the number of daily vehicles. Adventure Park has determined from historical experience that a staff member is needed for every 200 vehicles.

Adventure Park estimates staff for both school days and nonschool days. Nonschool days are higher attendance days than school days. The number of expected vehicles for each day is as follows:

		School Days		Nonschool Days
Number of vehicles per day		3,000		8,000
Number of days per year		165		200

Parking fees are $10 per vehicle. Each parking lot employee is paid $110 per day.

a. Determine the annual parking lot staff budget for school days, nonschool days, and total.

		School Days		Nonschool Days		Total
Total parking lot staff expense		$____		$___		$____

b. Determine the annual parking revenue for school days, nonschool days, and total.

		School Days		Nonschool Days		Total
Total parking annual revenues		$___		$___		$___

c. If depreciation expense and other expenses for running the parking lot were estimated to be $2 million per year, determine the parking lots budgeted profit.

Budgeted parking lot profit ____$

The Parking lot is being made for a pizza place. Complete the following:

Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November:

	Units
	12" Pizza		16" Pizza
Budgeted production volume	87,000		67,000

There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:

		12" Pizza		16" Pizza
Direct materials:
	Dough	0.55	lb. per unit	0.80	lbs. per unit
	Tomato	0.25		0.40
	Cheese	0.70		1.20

In addition, Tobins has determined the following information about each material:

	Dough		Tomato		Cheese
Estimated inventory, November 1	2,700	lbs.	1,100	lbs.	2,900	lbs.
Desired inventory, November 30	1,800	lbs.	1,300	lbs.	3,000	lbs.
Price per pound	$0.50		$0.60		$0.85

Prepare November's direct materials purchases budget for Tobins Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your final answers to the nearest dollar.

Tobins Frozen Pizza Inc.
Direct Materials Purchases Budget
For the Month Ending November 30
	Dough		Tomato		Cheese		Total
Units required for production:
12" pizza		___		____		____
16" pizza		___		____		____
Desired inventory, November 30		____		____		____
Total units available		___		____		____
Estimated inventory, November 1		____		___		____
Total units to be purchased		___		____		___
Unit price	x	$____	x	$____	x	$____
Total direct materials to be purchased		$___		$____		$____		$____