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Concept explainers
More than One Cost Driver
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as 11 as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers−the number of pizzas sold and the number of deliveries made.
The pizzerias cost formulas appear below:
In November, the pizzeria budgeted for 1.200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries.
Date concerning the pizzeria’s actual results in Noverber appear below:
Required:
1. Compute the revenue and spending variances for the pizzeria for November.
(Hint: Refer to Exhibit 9−6.)
2. Explain the revenue and spending variances.
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Chapter 9 Solutions
GEN COMBO LOOSELEAF INTRODUCTION TO MANAGERIAL ACCOUNTING; CONNECT AC
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- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
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