Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's owner determined the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost Cost Der Cost ner
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- Kojo coffee shop has the following cost: Coffee beans, Barista salary, Coffee shop Rent, Milk, utilities, and supervisor salary. . Classify the above XY Coffee shop cost according to the following classifications: Cost Cost tractability Cost behavior Value-adding Financial statementEx 5-35 (Algo) ABC; Selling Costs (LO 5-2, 5-4) Textile Crafts Company (TCC) sells craft kits and supplies to retail outlets and through online sites such as Etsy.com. Some of the items are manufactured by TCC, while others are purchased for resale. For the products it manufactures, the company currently bases its selling prices on a product-costing system that accounts for direct material, direct labor, and the associated overhead costs. In addition to these product costs, TCC incurs substantial selling costs, and Roger Jackson, controller, has suggested that these selling costs should be included in the product pricing structure. After studying the costs incurred over the past two years for one of its products, skeins of knitting yarn, Jackson has selected four categories of selling costs and chosen cost drivers for each of these costs. The selling costs actually incurred during the past year and the cost drivers are as follows: Cost Category Sales commissions Pay-per-click/Search…Classification of Costs Papa’s Pizza Heaven serves take-out pizza from three locations inColumbus, Maryland. Papa’s considers each pizza delivered (even if the order is for two or morepizzas) as the cost object for the company. The company incurs the following costs:1. Food costs, including pizza dough, olive oil, tomato sauce, mozzarella cheese, mushrooms, bellpeppers, Italian sausage, chopped fresh basil, pesto, pepperoni, onions, and ham2. Salaries for drivers3. Salaries for telephone operators4. Salaries for cooks5. Insurance for drivers6. Utilities (e.g., water and electricity)7. Advertising8. Discount coupons offered in local newspapers to attract customers9. Food handling licenses, inspections, and fees10. Accounting and payroll services11. Cooking supplies12. Cleaning supplies13. Mortgage payments on the three locations owned by Papa’s Pizza Heaven14. Insurance on facilitiesRequired1. For each cost item, indicate whether it is fixed or variable relative to the cost object.2.…
- Classifying Costs\\n\\nConsider the pizza chain Blaze Pizza. It custom builds and cooks each pizza to order. Items 1-5 represent cost activities associated with a particular store.\\n\\n1. Pepperoni on the pizza\\n\\n2. Wood to fuel the fire used to cook the pizzas (assume that ovens are maintained at the same temperature during business hours)\\n\\n3. Insurance on the building\\n\\n4. The labor costs for the employee building and cooking each pizza\\n\\n5. The costs associated with employees taking pizza orders\\n\\nRelative to the pizzas, classify each cost activity above as variable or fixed AND direct or indirect.Match each of the following cost items with the value chain business function where you would expect the cost to be incurred: Cost Item 1. Labor time to repair products under warranty 2. Radio commercials 3. Labor costs of delivering customer orders 4. Testing of competitor's product 5. Direct manufacturing labor costs 6. Development of order tracking system for online sales 7. Design cost of new product brochures 8. Hours spent designing childproof bottles 9. Training costs for representatives to staff the customer call center 10. Installation of robotics equipment in manufacturing plant Business FunctionGabriel Supermarkets (GS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their activity cost rates as follows: i (Click the icon to view the activity cost rates.) The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines are as follows: (Click the icon to view the information for the three product lines.) Read the requirements. Requirement 1. Use the simple costing system to prepare a product-line profitability report for GS. (Round the percentages to the nearest hundredth percent, X.XX%. Frozen Products Revenues Costs Cost of goods sold Store support Total costs Operating income Operating income/Revenues More info Milk and Baked Goods Fruit Juice Ordering Delivery and receipt of merchandise Shelf-stocking Customer support and assistance Print % % $96 per purchase order…
- ell Computer incurs the following costs: LOADING... (Click the icon to view the costs.) Requirement Classify each of the cost items (a-h) into one of the business functions of the value chain. Cost Item Value Chain Business Function a. Utility costs for the plant assembling the Latitude computer line of products b. Distribution costs for shipping the Latitude line of products to a retail chain c. Payment to David Newbury Designs for design of the XPS 2-in-1 laptop d. Salary of computer scientist working on the next generation of servers e. Cost of Dell employees' visit to a major customer to demonstrate Dell'sAllocating Selling and Administrative Expenses using Activity-Based CostingShrute Inc. manufactures office copiers, which are sold to retailers. The price and cost of goods sold for each copier are as follows: Price$1,110per unitCost of goods sold682 Gross profit$428per unit In addition, the company incurs selling and administrative expenses of $414,030. The company wishes to assign these costs to its three major retail customers, The Warehouse, Kosmo Co., and Supply Universe. These expenses are related to its three major nonmanufacturing activities: customer service, sales order processing, and advertising support. The advertising support is in the form of advertisements that are placed by Shrute Inc. to support the retailer's sale of Shrute copiers to consumers. The budgeted activity costs and activity bases associated with these activities are: ActivityBudgeted Activity Cost Activity BaseCustomer service$76,860Number of service requestsSales order processing25,920Number of sales…eBook Show Me How Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.00 per guest check-in, $16.00 per room cleaning, and $5.00 per served meal (not including food). Tara Lawson visited the hotel for a 5-night stay. Tara had 7 meals in the hotel during the visit. Determine the total activity-based cost for Lawson's visit during the month. Round your answer to the nearest cent.
- Assume that company owns three supermarkets-A, B, and C. Supermarket A Incurs numerous costs, one of which Is called Deli Department manager's salary. Which of the following cholces properly classifies this particular cost with respect to the chosen cost objects: Cost object: Deli Department Cost Object: A particular customer Direct Indirect Direct Indirect A) No Yes No Yes в) Yes No No Yes C) Yes No Yes No D) No Yes Yes No Multiple Choice Choice A Choice B Choice C Choice Dctivity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8 per guest check-in, $25 per room cleaning, and $4 per served meal (not including food). Ginny Campbell visited the hotel for a three-night stay. Campbell had three meals in the hotel during her visit. Determine the total activity-based cost for Campbell's visit.Essential College Supplies (ECS) is a store on the campus on a large Midwestern university. The store has both an apparel section (t-shirts with the school logo) and a convenience section. ECS reports revenues for the apparel section separately from the convenience section. Requirement Classify each cost item (A-H) as follows: a. Direct or indirect (D or I) costs of the total number of t-shirts sold. b. Variable or fixed (V or F) costs of how the total costs of the apparel section change as the total number of t-shirts sold changes. (If in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the total number of t-shirts sold.) Requirement a. Classify each cost item (A-H) as direct or indirect (D or I) costs of the total number of t-shirts sold. Cost Item D or I A. Annual fee for licensing the school logo B. Cost of store manager's salary C.…