PLEASE ASAP

1. (8 points) Pie Guys Pizzeria is owned and operated by three brothers. Data concerning the pizzerias monthly revenues and costs appear below (q refers to the number of pizzas served): Formula Revenue $15.05q Cost of ingredients $4.90q Rent $2,050 Utilities $300 + $0.20q Salaries $6,000 Miscellaneous $500 + $0.60q Actual results for February appear below. Prepare a flexible budget performance report for the pizzeria for February for 1,300 pizzas. Revenue $19,400 Cost of ingredients 6,500 Rent 2,050 Utilities 540 Salaries 6,150 Miscellaneous 1,150 Required: a. Prepare a budget for 1,200 pizzas (this is the planning budget). b. Prepare a budget for 1,300 pizzas (this is the flexible budget). c. Compute the activity variances between the two budgets and revenue/spending variances between the actual data and the flexible budget. Also indicate whether the variance is favorable or unfavorable.

3. (10 points) The following standards have been established for a raw material used to make product I92: Standard quantity of the material per unit of output .... 6 pounds Standard price of the material ...................................... $2.25 per pound Standard hours of labor per unit of output 3 hours Standard rate of the labor per hour $8 per hour The following data pertain to a recent months operations: Actual material purchased....................... 13,600 pounds Actual cost of material purchased ........... $31,620 Actual material used in production ......... 13,600 pounds Actual output........................................... 2,300 units of product I92 Actual labor used 7,100 hours Actual total labor cost $57,150 Required: a. What is the materials price variance for the month? b. What is the materials quantity variance for the month? c. What is the labor rate variance for the month? d. What is the labor efficiency variance for the month?

Actual Units Actual Revenue & Flexible Results Spending Budget (1,300 pizzas) Variances (1,300 pizzas) Activity Variances Planning Budget (1,200 pizzas) Revenue Expenses: Cost of ingredients Rent Utilities Salaries Miscellaneous Total expenses Net operating income