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Pazzo's Pizza Utilizes Activity-Based Costing (ABC) to Account for Its

Question 37

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Pazzo's Pizza utilizes Activity-Based Costing (ABC) to account for its Manufacturing Overhead (MOH) costs, and they have determined that they have three key activities: Property tax ($88.77 per square foot) , Floor supervisor wages ($18.00 per hour) , and Cleaning ($8.98 per hour) . Pazzo's Pizza anticipates that they will sell the following quantities of three different kinds of pizza: Cheese, 68,392 pizzas; Pepperoni, 49,708 pizzas; and Veggie, 26,909 pizzas. Each pizza will need to use the following resources:
Pazzo's Pizza utilizes Activity-Based Costing (ABC)  to account for its Manufacturing Overhead (MOH)  costs, and they have determined that they have three key activities: Property tax ($88.77 per square foot) , Floor supervisor wages ($18.00 per hour) , and Cleaning ($8.98 per hour) . Pazzo's Pizza anticipates that they will sell the following quantities of three different kinds of pizza: Cheese, 68,392 pizzas; Pepperoni, 49,708 pizzas; and Veggie, 26,909 pizzas. Each pizza will need to use the following resources:   Assuming that their estimates are final, what is the total product cost for the cheese pizzas? (Do not round intermediate calculations.)  A)  $108,172.25 B)  $182,697.31 C)  $207,911.68 D)  $219,818.92 Assuming that their estimates are final, what is the total product cost for the cheese pizzas? (Do not round intermediate calculations.)


A) $108,172.25
B) $182,697.31
C) $207,911.68
D) $219,818.92

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