Analytical Thinking (Algo) [LO9-2, LO9-4] 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 createda planning budget that includes a cost formula for mozzarella cheese of $10.40 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 $3.196. Required: 1. What is the mozzarella cheese spending variance for June? 2 Assume that the company establishes a price standard of $130 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 varionce for mozzarella cheese for June? Complete this question by entering your answers in the tabs below. Řequired 1 Required 2 What is the mozzarella cheese spending variance for June? (Indicate the effect of each variance by selecting "F for favorable, aluer
Analytical Thinking (Algo) [LO9-2, LO9-4] 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 createda planning budget that includes a cost formula for mozzarella cheese of $10.40 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 $3.196. Required: 1. What is the mozzarella cheese spending variance for June? 2 Assume that the company establishes a price standard of $130 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 varionce for mozzarella cheese for June? Complete this question by entering your answers in the tabs below. Řequired 1 Required 2 What is the mozzarella cheese spending variance for June? (Indicate the effect of each variance by selecting "F for favorable, aluer
Chapter3: Cost-volume-profit Analysis
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Analytical Thinking (Algo) [LO9-2, LO9-4]
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 $10.40 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 $3,196.
Required:
1. What is the mozzarella cheese spending variance for June?
2. Assume that the company establishes a price standard of $1.30 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 veriance 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.
Řequired 1
Required 2
What is the mozzarella cheese spending variance 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.)
Spending vartance
<Reguired 1
Required 2>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc172220c-b8c6-4fe6-be57-f2666808bc01%2F6e48cd04-e74d-4109-90db-65b4677ae8e5%2Fm0843o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Analytical Thinking (Algo) [LO9-2, LO9-4]
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 $10.40 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 $3,196.
Required:
1. What is the mozzarella cheese spending variance for June?
2. Assume that the company establishes a price standard of $1.30 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 veriance 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.
Řequired 1
Required 2
What is the mozzarella cheese spending variance 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.)
Spending vartance
<Reguired 1
Required 2>
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