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 $6.00 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 $2,820.   Required: 1. What is the mozzarella cheese spending variance for June? 2. Assume that the company establishes a price standard of $0.75 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?

Lavado Rapido is a Mexican company that owns and operates a large automatic car wash facility near Mexico City. The following table provides data concerning the company’s costs: For example, electricity cost are $1,500 per month plus $0.20 per car washed. The company expects to collect an average of $5.50 per car washed . The company actually washed 9,500 cars in October. Required: Prepare the company’s flexible budget for October.

Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The company's policy is to have enough material on hand to equal 10% of the next month's production needs and to maintain a finished goods inventory equal to 25% of the next month's production needs. PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units or dollars), which are rounded to two decimal places and shown with "$" and commas as needed (i.e. $1,234.56) Cost per Pound Desired Ending Inventory DM per Unit Units to be Produced Pounds Needed for Production Required DM Pounds Beginning Inventory Total Cost of DM Purchase Total DM Required Using the information aboye, along with the terms above, prepare a direct materials (DM) budget…

Allonby Foods processes frozen meals for sale in grocery and other retail outlets. Two versions are produced: The FlavorPak version has a budgeted price of $16 per case and a standard variable cost of $9 per case. The Gourmet version has a budgeted price of $29 per case and a standard variable cost of $18 per case. At the beginning of the year, the Marketing Group at Allonby estimated that the company would sell 60,000 cases of the FlavorPak version and 36,000 cases of the Gourmet version. The actual results for the year showed that 56,700 cases of the FlavorPak version and 37,800 cases of the Gourmet version were sold. Total revenues generated by sales of both versions amounted to $1,993,950 with $1,058,400 coming from the Gourmet version sales. Required: a. Compute the sales activity variance for the year. b. Compute the mix and quantity variances for the year. Complete this question by entering your answers in the tabs below. Required A Required B Compute the sales activity variance…

Cloud Shoes manufactures recovery sandals and is planning on producing 12,000 units in March and 11,500 in April. Each sandal requires 1.2 yards of material, which costs $3.00 per yard. The company’s policy is to have enough material on hand to equal 15% of next month’s production needs and to maintain a finished goods inventory equal to 20% of the next month’s production needs. PLEASE NOTE: Units are rounded to whole numbers with commas as needed (i.e. 1,234). All dollar amounts are rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345), except for any "per" amounts (units or dollars), which are rounded to two decimal places and shown with  "$" and commas as needed (i.e. $1,234.56) Cost per Yard Desired Ending Inventory DM per Unit Units to be Produced Yards Needed for Production Required DM Yards Beginning Inventory Total Cost of DM Purchase Total DM Required Using the information above, along with the terms above, prepare a direct materials…

Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 6,700 snowboards and 7,700 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 167,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,200 snowboards and 5,700 pounds of carbon fiber in inventory. Carbon fiber costs $16 per pound. Each snowboard requires 0.5 hour of direct labor at $21 per hour. Variable overhead is budgeted at the rate of $11 per direct labor hour. The company budgets fixed overhead of $1,799,000 for the quarter. Required: 1. Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given.

Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 6,700 snowboards and 7,700 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 167,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,200 snowboards and 5,700 pounds of carbon fiber in inventory. Carbon fiber costs $16 per pound. Each snowboard requires 0.5 hour of direct labor at $21 per hour. Variable overhead is budgeted at the rate of $11 per direct labor hour. The company budgets fixed overhead of $1,799,000 for the quarter. 4. Prepare the factory overhead budget for the third quarter.

Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 6,700 snowboards and 7,700 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 167,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,200 snowboards and 5,700 pounds of carbon fiber in inventory. Carbon fiber costs $16 per pound. Each snowboard requires 0.5 hour of direct labor at $21 per hour. Variable overhead is budgeted at the rate of $11 per direct labor hour. The company budgets fixed overhead of $1,799,000 for the quarter. 2. Prepare the direct materials budget for the third quarter.

Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 5,600 snowboards and 6,600 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 156,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 4,100 snowboards and 4,600 pounds of carbon fiber in inventory. Carbon fiber costs $21 per pound. Each snowboard requires 0.5 hour of direct labor at $26 per hour. Variable overhead is budgeted at the rate of $14 per direct labor hour. The company budgets fixed overhead of $1,788,000 for the quarter.

Healthy Hearth specializes in lunches for health-conscious people. The company produces a small selection of lunch offerings each day. The menu selections may vary from day to day, but Healthy Hearth charges the same price per menu selection because it adjusts the portion sizes according to the cost of producing the selection. Healthy Hearth currently sells 5,000 meals per month. Variable costs are $3 per meal, and fixed costs total $5,000 per month. A government agency recently proposed that Healthy Hearth provide 1,000 meals next month for senior citizens at $3.50 per meal. Volunteers will deliver the meals to the senior citizens at no charge.   Required  (a) Suppose Healthy Hearth has sufficient idle capacity to accommodate the government order for next month. What will be the impact on Healthy Hearth’s operating income if it accepts this order? (b) Suppose that Healthy Hearth would have to give up regular sales of 500 meals, at a price of $4.50 each, to accommodate the government…