Pizzazz Pizza Inc

question 59

Essay

Pizzazz Pizza Inc.’s activity based flexible budget is as follows:

Pizzazz’s activity for September is as follows:
Required:
1. Determine the flexible budgeted cost for each of the following:

a. Indirect material
b. Utilities
c. Inspection
d. Test kitchen
e. Material handling
f. Total overhead cost


2.Compute the variance for setup cost during the month, assuming that the actual setup cost was $3,000: Using the activity-based flexible budget.

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Definitions:

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A reduction from the listed price of goods or services offered to buyers in the business-to-business market to encourage purchase in larger quantities.

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