Chapter 10 Standard Costs and Variances Exercises The ingredient costs of a 16\"

Question

Chapter 10 Standard Costs and Variances Exercises The ingredient costs of a 16" pizza supposed to be $ 2.15 The preparation and cooking time of a pizza supposed to be 15 minutes The expected labor cost for an hour is S12 Actual Costing The actual ingredient costs of a 16" pizza is S 2.35 The actual preparation and cooking time of a pizza is 20 minutes The actual labor cost for an hour is $12 Variance? If a company sells 100 pizza on a specific day, what would be the cost variance of total actual costs of pizza and the total costs of pizza supposed to be?

Explanation / Answer

Standard costs of 100 pizza Particulars Calculation Amount Ingredients 2.15*100 215 Labor 12 per hour*100 pizzas*15/60 300 Total 515 Actual costs of 100 pizza Particulars Calculation Amount Ingredients 2.35*100 235 Labor 12 per hour*100 pizzas*20/60 400 Total 635 Cost variance standard cost- actual cost =515-635 120 unfavourable

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