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?

Barb’s Best Pies is based in Newtown and makes gourmet pies sold online to customers on credit (40% if sakes) and to customers in the factory for cash (60% of sales). Barb’s Best Pies is preparing a sales budget for the October – December quarter. Sales are estimated at 1,100 pies in October, 1,200 pies in November and 1,600 pies in December. The average selling price per pie is $21. Credit customers pay 95% in the month after sale. The remaining credit sales are bad debt. September sales were 1,300 pies. What is the total credit sales in November?

Barb's Best Pies is based in the Newtown and makes gourmet pies sold online to customers on credit(40% of sales) and to customers in the factory for cash(60% of sales).Barb's Best Pies is preparing a sales budget for the October-December quarter.Sales are estimated at 1,400 pies in October,1,200 pies in November and 2,600 pies in December.The average selling price per pie is $15.Credit customers pay 90 per cent in the month after sale.The remaining credit sales are bad.September sales were 1,300 pies.What is the total credit sales in November? A.7,200 B.6,480 C.18,000 D.None of the other options E.19,500

Donaldson Industries manufactures a popular interactive stuffed animal for children that requires four computer chips inside each toy. The company pays $1 for each computer chip. To help to guard against stockouts of the computer chip, Donaldson Industries has a policy that states that the ending inventory of computer chips should be at least 25% of the following month's production needs. The production schedule for the first four months of the year is as follows: View the production schedule. Requirement Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget. Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget. Production schedule Donaldson Industries Direct Materials Budget For the Months of January through March January February March Quarter January.... Units to be produced 5,600 4,200 4,900 14,700 February 4 March…

Sanchez Sweets is in the process of preparing a production cost budget for May. Actual costs in April for production of 3,500 batches of cookies were:   Ingredients cost                                       $  7,200 Rent                                                             1,100 Labor cost                                                    3,300 Depreciation                                                   900 Other fixed costs                                            700 Total                                                         $13.200   Ingredients cost and Labor cost are considered variable. The company is currently producing and selling 85,000 batches of cookies annually with each batch sold for $8.00. The company is considering lowering the price to $7.50 per batch for which management estimates this will increase sales to 91,000 batches. Ingredients and labor are the only variable costs.   What is the incremental cost associated with producing an extra 6,000…

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.

Orchid Corporation produces pre-packed meal boxes with three pre-made dishes and one soup per meal box. The pre-made dishes and the soup in each meal box are decided and designed by Orchid Corporation and the meal boxes are ordered through Orchid Corporation’s website. The company’s operating budget for March 2021 included these data:   Number of meal boxes     15,000 Selling price per box $         20 Variable cost per box $           8 Fixed costs for the month $145,000   The actual results for March 2021 were as follows:   Number of checkbooks produced and sold     12,000 Average selling price per box $         21 Variable cost per box $           7 Fixed costs for the month $150,000   The executive vice president of the company observed that the operating income for March was much lower than anticipated, despite a higher-than-budgeted selling price and a lower-than-budgeted variable cost per unit. As the company’s management…

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…