Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please please help! thank you so much, i appreciate it! Southside Pizzeria wants to improve its ability to manage the ingredient costs associated with making

please please help! thank you so much, i appreciate it!
image text in transcribed
image text in transcribed
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 $8.40 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 $2,726. Required: 1. What is the mozzarella cheese spending variance for June? 2. Assume that the company establishes a price standard of $1.05 per ounce for mozzarella cheese and a quantity standard of eight ounces of cheese per pizza. Also, assume that Southside actually used 9,400 ounces of cheese during the month to make 1,100 pizzos. a. What is the materials price variance for mozzarella cheese for June? b. What is the materials quantity variance for mozzarella cheese for June? c. What is the materials spending variance for mozzarella cheese for June? Complete this question by entering your answers in the tabs below. What is the mozzarelia cheese spending variance for June? (Indicate the effect of each variance by selecting " F " for favorable, "U" for unfavorable, and "None" for no effect (lie, zero variance). Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. Assume that the company establishes a price standard of $1.05 per ounce for mozzarella cheese and a quantity standard of eight ounces of cheese per pizza. Also, assume that Southside actually used 9,400 ounces of cheese during the month to make 1,100 pizzas. a. What is the materials price variance for mozzarella cheese for June? b. What is the materials quantity variance for mozzarella cheese for June? c. What is the materials spending variance for mozzarella cheese for June? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing An International Approach

Authors: Wally J. Smieliauskas, Kathryn Bewley

6th edition

978-0070968295, 9781259087462, 978-0071051415

More Books

Students also viewed these Accounting questions