Accounting (Text Only)
26th Edition
ISBN: 9781285743615
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 22, Problem 22.4CP
Objectives of the
Domino’s Pizza L.L.C. operates pizza delivery and carry-out restaurants. The annual report describes its business as follows:
We offer a focused menu of high-quality, value-priced pizza with three types of crust (Hand- Tossed. Thin Crust, and Deep Dish), along with buffalo wings, bread sticks, cheesy bread. CinnaStix®, and Coca-Cola® products. Our band-tossed pizza is made from fresh dough produced in our regional distribution centers. We prepare every pizza using real cheese, pizza sauce made from fresh tomatoes, and a choice of high-quality meat and vegetable toppings in generous portions. Our focused menu and use of premium ingredients enable us to consistently and efficiently produce the highest-quality pizza.
Over the 41 years since our founding, we have developed a simple. cost-efficient model. We offer a limited menu, our stores are designed for delivery and carry-out, and we do not generally offer dine-in service. As a result, our stores require relatively small, lower-rent locations and limited capital expenditures.
How would a master budget support planning, directing, and control for Domino's?
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Focused Value Streams, Product Costing
Sixty employees (all CPAS) of a local public accounting firm eat lunch at least twice weekly at a very popular pizza restaurant. The pizza restaurant recently began offering discounts for groups of 15 or more. Groups would be seated in a separate
room, served individual bowls of salad costing $1.60 each, pitchers of root beer costing $3.00 each (each pitcher has a five-glass capacity), and medium, two-topping pizzas for $11.00 (10 slices each). The food would have to be ordered in advance.
Thirty of the CPASs commit to eating two slices of pizza, four glasses of root beer, and one bowl of salad [a consumption pattern of (2,4,1)]. The other 30 are more hearty eaters and commit to eight slices of pizza, four glasses of root beer, and one
bowl of salad [a consumption pattern of (8,4,1)]. Each member of the group must pay an assessed amount for the lunch.
Required:
1. Determine the total number of pizzas, pitchers of root beer, and salads that must be…
Perfect Parties, Inc. has several divisions, one of which provides birthday parties at their facility, and has provided the actual and planning budget results for the month of June. The Controller has asked you prepare the Birthday Party Division Budget Performance Report.
Please provide me with the answers for the cells in yellow. greatly appreciate your help!
Special Order
Pete's Pizza makes the best pizzas in town. Based on Pete's current volume, the price and cost breakdown is outlined below.
The local high school has asked Pete to be their sole pizza provider for a large event and has offered to order 500 pizzas at a special price.
Assuming Pete has the capacity to produce these pizzas, identify which of the following items are relevant in deciding whether to accept this special order.
Per unit
Relevant?
Normal sales price
$
Special price
12.00
9.30
4.00
Direct materials
Direct labor
3.00
Variable overhead
0.50
Fixed overhead
3.00
Should Pete accept the order in either of the following scenarios?
A. Pete has capacity to produce these pizzas with no additional investments.
B. Pete would need to rent a piece of equipment to accommodate the order. The rent would cost Pete:
$
2,380
For each scenario below, enter the relevant amounts of accepting this special order of 500 pizzas in total (not per unit):
Scenario
A
B
Enter "=0" in the cell for…
Chapter 22 Solutions
Accounting (Text Only)
Ch. 22 - Prob. 22.1DQCh. 22 - Briefly describe the type of human behavior...Ch. 22 - What behavioral problems are associated with...Ch. 22 - What behavioral problems are associated with...Ch. 22 - Under what circumstances is a static budget...Ch. 22 - How do computerized budgeting systems aid firms in...Ch. 22 - Why should the production requirements set forth...Ch. 22 - Why should the timing of direct materials...Ch. 22 - a. Discuss the purpose of the cash budget. b. If...Ch. 22 - Prob. 22.10DQ
Ch. 22 - Prob. 22.1APECh. 22 - Flexible budgeting At the beginning of the period,...Ch. 22 - Prob. 22.2APECh. 22 - Production budget Magnolia Candle Inc. projected...Ch. 22 - Direct materials purchases budget MyLife...Ch. 22 - Direct materials purchases budget Magnolia Candle...Ch. 22 - Prob. 22.4APECh. 22 - Direct labor cost budget Magnolia Candle Inc....Ch. 22 - Prob. 22.5APECh. 22 - Cost of goods sold budget Prepare a cost of goods...Ch. 22 - Prob. 22.6APECh. 22 - Cash budget Magnolia Candle Inc. pays 10% of its...Ch. 22 - Personal budget At the beginning of the school...Ch. 22 - Flexible budget for selling and administrative...Ch. 22 - Static budget versus flexible budget The...Ch. 22 - Flexible budget for Assembly Department Steelcase...Ch. 22 - Production budget True Tab Inc. produces a small...Ch. 22 - Sales and production budgets SoundLab Inc....Ch. 22 - Professional fees earned budget for a service...Ch. 22 - Prob. 22.8EXCh. 22 - Direct materials purchases budget Romano's Frozen...Ch. 22 - Prob. 22.10EXCh. 22 - Prob. 22.11EXCh. 22 - Prob. 22.12EXCh. 22 - Direct labor budget for a service business...Ch. 22 - Production and direct labor cost budgets Levi...Ch. 22 - Factory overhead cost budget Sweet Tooth Candy...Ch. 22 - Cost of goods sold budget Delaware Chemical...Ch. 22 - Cost of goods sold budget The controller of...Ch. 22 - Schedule of cash collections of accounts...Ch. 22 - Schedule of cash collections of accounts...Ch. 22 - Schedule of cash payments for a service company...Ch. 22 - Schedule of cash payments for a service company...Ch. 22 - Capital expenditures budget On January 1, 2016,...Ch. 22 - Forecast sales volume and sales budget For 2016,...Ch. 22 - Sales, production, direct materials purchases, and...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Cash budget The controller of Sonoma Housewares...Ch. 22 - Budgeted income statement and balance sheet As a...Ch. 22 - Forecast sales volume and sales budget Sentinel...Ch. 22 - Sales, production, direct materials purchases, and...Ch. 22 - Budgeted income statement and supporting budgets...Ch. 22 - Cash budget The controller of Mercury Shoes Inc....Ch. 22 - Budgeted income statement and balance sheet As a...Ch. 22 - Prob. 22.1CPCh. 22 - Prob. 22.2CPCh. 22 - Static budget for a service company A bank manager...Ch. 22 - Objectives of the master budget Dominos Pizza...Ch. 22 - Integrity and evaluating budgeting systems The...
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