Pizzazz Pizza Inc

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.