5) Pazzo's Pizza utilizes Activity-Based Costing (ABC) to account for its Manufacturing Overhead (MOH) costs, and...
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5) Pazzo's Pizza utilizes Activity-Based Costing (ABC) to account for its Manufacturing Overhead (MOH) costs, and they have determined that they have three key activities: Property tax ($88.77 per square foot), Floor supervisor wages ($18.00 per hour), and Cleaning ($8.98 per hour). Pazzo's Pizza anticipates that it will sell the following quantities of three different kinds of pizza: Cheese, 68,392 pizzas; Pepperoni, 49,708 pizzas; and Veggie, 26,909 pizzas. Each pizza will need to use the following resources: LO: 3,4 Cheese $0.48 per pizza $1.28 per pizza 300 Pepperoni $0.62 per pizza $2.02 per pizza Direct Materials Direct Labor Square Feet Supervisor Hours 275 1,643 Cleaning Hours 2,432 Assuming that their estimates are final, what is the total cost per unit for the veggie pizzas? 2,000 4,100 Veggie $0.58 per pizza $1.57 per pizza 250 899 1,330 5) Pazzo's Pizza utilizes Activity-Based Costing (ABC) to account for its Manufacturing Overhead (MOH) costs, and they have determined that they have three key activities: Property tax ($88.77 per square foot), Floor supervisor wages ($18.00 per hour), and Cleaning ($8.98 per hour). Pazzo's Pizza anticipates that it will sell the following quantities of three different kinds of pizza: Cheese, 68,392 pizzas; Pepperoni, 49,708 pizzas; and Veggie, 26,909 pizzas. Each pizza will need to use the following resources: LO: 3,4 Cheese $0.48 per pizza $1.28 per pizza 300 Pepperoni $0.62 per pizza $2.02 per pizza Direct Materials Direct Labor Square Feet Supervisor Hours 275 1,643 Cleaning Hours 2,432 Assuming that their estimates are final, what is the total cost per unit for the veggie pizzas? 2,000 4,100 Veggie $0.58 per pizza $1.57 per pizza 250 899 1,330
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Answer Step 1 Calculation of Overheads for Veggie Pizza as per Activity Based Costing PARTICULARS C... View the full answer
Related Book For
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell
Posted Date:
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