Problem Activity Variance, Spending Variance, Materials Price Variance, Materials Quantity Variance 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 $2.40 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 $2,632 Required: 1. What is the mozzarella cheese activity variance for June? 2. What is the mozzarella cheese spending variance for June? 3. Assume that the company establishes a price standard of $0.30 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? Step-by-step solution Abbott Clinic uses patient-visits as its measure of activity. During February, the clinic budgeted for 2,400 patient-visits, but its actual level of activity was 2,700 patient-visits. The clinic uses the following revenue and cost formulas in its budgeting, where q is the number of patient-visits: PROBLEMS (Each problem is worth 15 points.) Revenue: $53.80q Personnel expenses: $32,000+ $16.60q Medical supplies: $700+$8.80q Occupancy expenses: $10,400+ $1.90 Administrative expenses: $5,500 +$0.20q The clinic reported the following actual results for February: Revenue.. Personnel expenses Medical supplies Occupancy expenses. Administrative expenses. $144,200 $77,380 $25,080 $15,440 $5,830 Prepare the clinic's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). Based on the report, describe the areas of concern for management