Question
In: Accounting
The D.K. Pizza House has provided you with the following information on its costs at various...
-
The D.K. Pizza House has provided you with the following information on its costs at various levels monthly sales.
Monthly sales in units 3,000 6,000 9,000
Cost of food sold 4,500 9,000 13,500
Payroll costs 3,500 5,000 6,500
Supplies 600 1,200 1,800
Utilities 360 420 480
Other operating costs 1,500 3,000 4,500
Building rent 1,000 1,000 1,000
Depreciation 200 200 200
Total $11,660 $19,820 $27,980
Required:
-
Identify each cost as variable, fixed or mixed?
-
Develop an equation to estimate total costs at various levels of activity?
-
Project total costs with monthly sales of 8,000?
Solutions
Expert Solution
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P6-2B The Piano Studio Ltd. has provided you with the following information with respect to its...
P6-2B
The Piano Studio Ltd. has provided you
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Date
Explanation
Supplier
Serial #
Unit Cost/Price
Aug. 1
Beginning inventory
Yamaha
YH6318
$1,800
Kawai
KG1268
1,800
Kawai
KG1520
900
Suzuki
SZ5716
1,400
Suzuki
SZ5828
1,900
Steinway
ST8411
2,900
Steinway
ST0944
2,500
10
Sales
Suzuki
SZ5828
3,000
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KG1268
2,100
15
Purchases
Yamaha
YH4418
1,600
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18...
P6-2B The Piano Studio Ltd. has provided you with the following information with respect to its...
P6-2B
The Piano Studio Ltd. has provided you
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for the month of August. The company uses the specific
identification cost formula.
Date
Explanation
Supplier
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Unit Cost/Price
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1,800
Kawai
KG1520
900
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1,400
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1,900
Steinway
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2,900
Steinway
ST0944
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10
Sales
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SZ5828
3,000
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2,100
15
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1
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$
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$
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$
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$
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Direct labor
$
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$
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Utilities
$
1,400
$
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Depreciation
$
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Insurance
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