Big Al’s pizza will use 10 production lines with five workers on each line. Each worker will be responsible for one of the five stages of production: dough, sauce, cheese, toppings and packaging. Each of the production lines can produce 20 meat pizzas per hour. Big Al’s purchases all fresh ingredients. The projected materials costs are as follows: Materials cost (per pizza) • Complete dough shells $.12 • Complete sauce packages $.20 • Complete cheese shells $.08 • Complete meat packages $.30 • Complete assembly package $.04 A. Calculate the Direct materials cost per meat pizza
Big Al’s pizza will use 10 production lines with five workers on each line. Each worker will be responsible for one of the five stages of production: dough, sauce, cheese, toppings and packaging. Each of the production lines can produce 20 meat pizzas per hour. Big Al’s purchases all fresh ingredients. The projected materials costs are as follows: Materials cost (per pizza) • Complete dough shells $.12 • Complete sauce packages $.20 • Complete cheese shells $.08 • Complete meat packages $.30 • Complete assembly package $.04 A. Calculate the Direct materials cost per meat pizza
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Big Al’s pizza will use 10 production lines with five workers on each line. Each worker will be responsible for one of the five stages of production: dough, sauce, cheese, toppings and packaging. Each of the production lines can produce 20 meat pizzas per hour.
Big Al’s purchases all fresh ingredients. The projected materials costs are as follows:
Materials cost (per pizza)
• Complete dough shells $.12
• Complete sauce packages $.20
• Complete cheese shells $.08
• Complete meat packages $.30
• Complete assembly package $.04
A. Calculate the Direct materials cost per meat pizza
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