Exercise Papa's Pizza Heaven serves take-out pizza from three locations in Columbus, Maryland. Papa's considers each pizza delivered (even if the order is for two or more pizzas) as the cost object for the company. The company incurs the following costs: Required: 182. For each cost item, indicate whether it is fixed or variable relative to the cost object and also indicate whether it is a product or a period cost. If a cost item could be either fixed or variable, select the Fixed/Variable cost option and if it could be either product or period, select the Period/Product cost option Items 1. Food costs, including pizza dough, olive oil, tomato sauce, mozzarella cheese, mushrooms, bell peppers, Italian sausage, chopped fresh basil, pesto, pepperoni, onions, and ham 2 Salaries for drivers 3 Salaries for telephone operators 4. Salaries for cooks 5. Insurance for drivers 6. Utilities (eg, water and electricity) 7 Advertising 8 Discount coupons offered in local newspapers to attract customers 9. Food handling licenses, Inspections, and fees 10 Accounting and payroll services 11 Cooking supplies 12 Cleaning supplies 13 Mortgage payments on the three locations owned by Papa's Pizza Heaven 14 Insurance on facilities Fixed Cost or Variable Cost 4 Product Cost or Period Cost
Exercise Papa's Pizza Heaven serves take-out pizza from three locations in Columbus, Maryland. Papa's considers each pizza delivered (even if the order is for two or more pizzas) as the cost object for the company. The company incurs the following costs: Required: 182. For each cost item, indicate whether it is fixed or variable relative to the cost object and also indicate whether it is a product or a period cost. If a cost item could be either fixed or variable, select the Fixed/Variable cost option and if it could be either product or period, select the Period/Product cost option Items 1. Food costs, including pizza dough, olive oil, tomato sauce, mozzarella cheese, mushrooms, bell peppers, Italian sausage, chopped fresh basil, pesto, pepperoni, onions, and ham 2 Salaries for drivers 3 Salaries for telephone operators 4. Salaries for cooks 5. Insurance for drivers 6. Utilities (eg, water and electricity) 7 Advertising 8 Discount coupons offered in local newspapers to attract customers 9. Food handling licenses, Inspections, and fees 10 Accounting and payroll services 11 Cooking supplies 12 Cleaning supplies 13 Mortgage payments on the three locations owned by Papa's Pizza Heaven 14 Insurance on facilities Fixed Cost or Variable Cost 4 Product Cost or Period Cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 3-50 (Static) Classification of Costs [LO 3-2, 3-3]
Papa's Pizza Heaven serves take-out pizza from three locations in Columbus, Maryland. Papa's considers each pizza delivered (even if
the order is for two or more pizzas) as the cost object for the company. The company incurs the following costs.
Required:
182. For each cost item, indicate whether it is fixed or variable relative to the cost object and also indicate whether it is a product or a
period cost. If a cost item could be either fixed or variable, select the Fixed/Variable cost option and if it could be either product or
period, select the Period/Product cost option.
Items
1.
Food costs, including pizza dough, olive oil, tomato sauce, mozzarella cheese, mushrooms, bell peppers,
Italian sausage, chopped fresh basil, pesto, pepperoni, onions, and ham
2 Salaries for drivers
3. Salaries for telephone operators
4. Salaries for cooks
5. Insurance for drivers
6. Utilities (e.g, water and electricity)
7. Advertising
8 Discount coupons offered in local newspapers to attract customers
9. Food handling licenses, inspections, and fees
10 Accounting and payroll services
11 Cooking supplies
12 Cleaning supplies
13 Mortgage payments on the three locations owned by Papa's Pizza Heaven
14 Insurance on facilities
Fixed Cost or Variable
Cost
Product Cost or
Period Cost:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7e1f74b8-f124-44d2-bf61-7e8f2ecba9e0%2F8856eba7-fe44-4dd2-90f6-6e3c7ca1250b%2F7umeo7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 3-50 (Static) Classification of Costs [LO 3-2, 3-3]
Papa's Pizza Heaven serves take-out pizza from three locations in Columbus, Maryland. Papa's considers each pizza delivered (even if
the order is for two or more pizzas) as the cost object for the company. The company incurs the following costs.
Required:
182. For each cost item, indicate whether it is fixed or variable relative to the cost object and also indicate whether it is a product or a
period cost. If a cost item could be either fixed or variable, select the Fixed/Variable cost option and if it could be either product or
period, select the Period/Product cost option.
Items
1.
Food costs, including pizza dough, olive oil, tomato sauce, mozzarella cheese, mushrooms, bell peppers,
Italian sausage, chopped fresh basil, pesto, pepperoni, onions, and ham
2 Salaries for drivers
3. Salaries for telephone operators
4. Salaries for cooks
5. Insurance for drivers
6. Utilities (e.g, water and electricity)
7. Advertising
8 Discount coupons offered in local newspapers to attract customers
9. Food handling licenses, inspections, and fees
10 Accounting and payroll services
11 Cooking supplies
12 Cleaning supplies
13 Mortgage payments on the three locations owned by Papa's Pizza Heaven
14 Insurance on facilities
Fixed Cost or Variable
Cost
Product Cost or
Period Cost:
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