Required: 1. Compute the revenue and spending variances for the pizzeria for November. (Indicate the effect of each variance by selecting for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Pizzas Deliveries Revenue Expenses: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Total expense Net operating income Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results $ 1,960 220 33,970 9,010 6,050 935 682 1,006 480 2,070 850 21,083 $ 12,887 Revenue and Spending Variances Flexible Budget

Making outsourcing decisions Suppose Roasted Pepper restaurant is considering whether to (1) bake bread for its restaurant in-house or buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $0.52 of ingredients, $0.27 of variable overhead (electricity to run the oven), and $0.79 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Roasted Pepper assigns $0.96 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.78 per loaf. Requirements What is the full product unit cost of making the bread in-house? Should Roasted Pepper bake the bread in-house or buy from the local bakery? Why? In addition to the financial analysis, what else should Roasted Pepper consider when making this decision?

Suppose Roasted Pepper restaurant is considering whether to​ (1) bake bread for its restaurant​ in-house or​ (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $0.50 of​ ingredients, $0.22 of variable overhead​ (electricity to run the​ oven), and $0.75 of direct labor for kneading and forming the loaves. Allocating fixed overhead​ (depreciation on the kitchen equipment and​ building) based on direct​ labor, Roasted Pepper assigns $1.05 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.72 per loaf.                              Read the requirements1.   Requirements 1. What is the unit cost of making the bread​ in-house?   Complete the following outsourcing decision analysis to determine Roasted Pepper​'s unit cost of making the bread.    Roasted Pepper Outsourcing Decision Direct material   Direct labor   Variable overhead   Variable cost…

Value chain and classification of costs, computer company. Dell Computer incurs the following costs:a. Utility costs for the plant assembling the Latitude computer line of productsb. Distribution costs for shipping the Latitude line of products to a retail chainc. Payment to David Newbury Designs for design of the XPS 2-in-1 laptopd. Salary of computer scientist working on the next generation of serverse. Cost of Dell employees’ visit to a major customer to demonstrate Dell’s ability to interconnect withother computersf. Purchase of competitors’ products for testing against potential Dell productsg. Payment to business magazine for running Dell advertisementsh. Cost of cartridges purchased from outside supplier to be used with Dell printers

Target costs, effect of process-design changes on service costs. Solar Energy Systems (SES) sells solar heating systems in residential areas of eastern Pennsylvania. A successful sale results in the homeowner purchasing a solar heating system and obtaining rebates, tax credits, and nancing for which SES completes all the paperwork. The company has identied three major activities that drive the cost of selling heating systems: identifying new contacts (varies with the number of new contacts); traveling to and between appointments (varies with the number of miles driven); and preparing and ling rebates and tax forms (varies with the number of solar systems sold). Actual costs for each of these activities in 2016 and 2017 are:

Target costs, effect of process-design changes on service costs. Solar Energy Systems (SES) sells solar heating systems in residential areas of eastern Pennsylvania. A successful sale results in the homeowner purchasing a solar heating system and obtaining rebates, tax credits, and financing for which SES completes all the paperwork. The company has identified three major activities that drive the cost of selling heating systems: identifying new contacts (varies with the number of new contacts); traveling to and between appointments (varies with the number of miles driven); and preparing and filing rebates and tax forms (varies with the number of solar systems sold). Actual costs for each of these activities in 2016 and 2017 are:

Suppose Country Cafe restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $0.44 of ingredients, $0.28 of variable overhead (electricity run the oven), and $0.72 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation in the kitchen equipment and building) bases on the direct labor, County Cafe l assigns $1.05 of fixed overheard per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.72 per loaf. Requirement 3. In addition to the financial analysis what else should Country Cafe consider when making this decision? Country Cafe should consider the following qualitative factors before making a final decision: A. Will the local bakery meet their delivery time requirements ? B.How does the quality and freshness of the local bakery bread compare to Country Cate bread? C. Both A and B…

Suppose Country Cafe restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $0.44 of ingredients, $0.28 of variable overhead (electricity run the oven), and $0.72 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation in the kitchen equipment and building) bases on the direct labor, County Cafe l assigns $1.05 of fixed overheard per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.72 per loaf. Requirements 1. What is the unit cost of making the bread in-house? Complete the following outsourcing decision analysis to determine Country Cafe's unit cost of making the bread Direct material Direct labor Variable overhead Variable cost per unit Plus : Fixed overhead per unit Cost per unit Requirement 2. Should Country Cafe bake the bread in-house or buy from the local bakery? Why?…

Suppose Country Cafe restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $0.44 of ingredients, $0.28 of variable overhead (electricity run the oven), and $0.72 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation in the kitchen equipment and building) bases on the direct labor, County Cafe l assigns $1.05 of fixed overheard per loaf. None of the fixed costs are avoidable. The local bakery would charge $1.72 per loaf. Requirements 1. What is the unit cost of making the bread in-house? Complete the following outsourcing decision analysis to determine Country Cafe's unit cost of making the bread

Calculate the cost per sale in 2016.