Lo 32,3-3) 350 Classification of Costs Pups’s Pizza Heaven serves take-out pizza from three locations in Columbus, Maryland. Papa's considers each pizza delivered (even ifthe onder is fr two or more pizzas) asthe cost object forthe company. The company incurs the following costs: 1, Food eos, including pizza dough, olive oil, tomato sauce, mozzarella cheese, mushrooms, bell Peppers, lsian sausage, chopped fresh basi, pesto, pepperoni, onions, and ham Salaries for drivers Salaries for telephone operators Salis for cooks rance for drivers Uses (eg, water and electricity) Advertsing Discount coupons offered in local newspapers to atrct customers 9, Food handling licenses, inspection, and fees 10. Accounting and payroll services 11. Cooking supplies 12, Cleaning supplies 13, Morigage payments on the thre locations owned by Papa's Pizza Heaven 14 Insurance on faites Required 1, For each cot item, indicate wheter itis fixed or variable relative tote cos object. 2. Fareach cost item, indicate wheter itis a product oa period cos. 3. Which of the above costs could have potentially harmful environmental effects, and why? © Product cot tecid cost @ fe Ve Trawamce for deme || Fead Nmctring Uidties thas ter bene ‘talasies fee cook Diamant crap fecwaabey # pyet Secacance freibtis ect payne Coking saps Clegaing,Sagplies Sdacer tees peter A licenses @ NEC ime Pexied cost wmdsnnadion Fed Sasa fei tefeswlenunevey Built Mayan aon vo Costing Sapper [)Mactng Maina tun tian Mites, hase tor doing salasies foe cook Paula cle Acer pe Troarance fasts echge_pynet Clearing Sagplts Gaaves_teleghe operter Rood license2, 3.3] asic ification of Costs Speedy Auto Service provides ol changes, tre repanteplacement, and minor repaits from 12 different locations in Wadesborough, Pennsylvania, The technicians who replace the oi and pars (mostly windshield wipers, ae filters, and the ik) are paid for an eight-hour day, respective ofthe number of customers in a given day. The cost object for Speedy is each cus tomer visit. The cost elements for Speedy include: 1. Technicians who change the oil and replace parts 2, Pans 3. Purchase of oil and ties, 4 Supplies, rags, cleanup equipment 5. Tools rates, Cot 10. 1 2. 13. Management, and Cost Sens Rental of each location Advertising u Licenses and fees Employee tsining—10 hours at ime of hiring and 2 hours per month therafter ‘Securit service to watch the locations during closing hours Online software system for managing sales, costs, and Financial reports including tx returns and employee payroll, Disposal of waste and use tres Required 1 For each cost item, indicate whether is fixed or variable relative to the cost object. 2. For ach cos item, indicate whether it isa product o a period cost. 3. Which of the cost listed on the previous page could have poentilly harmful environmental effets? Why? 0 Fe ve Technicians pt Tools oi| & tas tena Supplies Neston Ntlbies Ljeonse 2 fee Engle Fanny Seusiy alice stteance Disporal ala ta ® Product cost Period cost @ WC ae Period cost wmdvnn atria Technicians ental SAddeswderyacnny aaah Yovruaun a Tools Nuet\ sing Marwatun taro port Uphbies oi| & tas Ljeonse 9 tor Supplies Engler Fein Disposal whe tie Sean alae tance,Advertising expenses ll $ 150,000 S—s¢ Depreciation expense—administrative office 5u) 75,000 Depreciation expense—plant and equipment © 320,000 Depreciation expense—delivery trucks Se! 45,000 Materials Inventory, beginning Or 16,000 Materials Inventory, ending 0 18,000 Direct materials purchases 1” 410,000 Direct labor pL 512,000 Indirect labor 0} 269,000 Finished Goods Inventory, beginning 55,000 Finished Goods Inventory, ending 43,000 Insurance on plant 0 32,000 Heat and light for plant 0 22,000 Repairs on plant building oF 36,000 Supervisor's salary—plant © 4 98,000 Supplies—plant 0}, 132,000 Supplies—administrative office 78,000 Worksin-Process Inventory, beginning 31,000 Work:in-Process Inventory, ending 39,000 Sales representatives’ salaries 5c 328,000 Sales revenue 2,885,000 Faia Win Yachts In statemenh at! Coat A Good Meafactaed for fre Yad Ended, Decenhec 34 Madesiels Begineng, Mobuals Tayntoye 16,060 Dieuct Mateciols Parchass, 410,000 Maresins _AiieMes 424,900 Jess; Ending Matecils Taetory (49,000) Maesicb Used 49,000 Disucl Lebo sizv0 Factory omhtod {04,000 Tobl Maafackecin costs AW: Begjaniag, acta Raw Sautetory Teh) Manafackuciny Costs Les Rnbing neste Racer Tatty cost X Gand MarufadusedFoc the Yeax Ended December 34 Sale Cost Sal i Fonohed Ge recy ast ot _Gonls Mann factured Cort Geos valinble toe sol 2, H45, 000 Less: Embing Fished Goods Laue iy 45, 000Notton nduste: Ieee Steamuat ch cost Sade Manali HS) Fes The eh fol wmdisgch Lakes. 1.49,000.. theta : ne bic 2800, _ Watecls tas Sto 1 Fright in 5000 altace Avsble, 598900 L vwnmnneaitksling Mes Eo taneenenee £300) einen cnallledesaly Yad, 2.5000. — a a ll nnn AES a LH ll renner DLE nnn Set el MA lt a Heating aie te) hse = meee 10, a0. a = Tnsdstite meme $200. - SNA a ma etl tei St ae sms AML ging. NTP Net BE a wes EWIP I: Cimeee Marton Loastus ———— een entre Tn SNE enna a Fos Sh, Maite cade. en Fae. —— Other yeunue a ost of Gouds. 94 evens ne LEGE mn ED anne CoGM. MMat000. cvnmusntnsnennnnnnanenenee ennnnnebtssi EEGL C5900) feds ~ i Gees, Hesgis, 251,900 mi iug, bas shaatwe. WE; pine — Uplate $300 ._ i sesnnren sre ISEB 8009 es oy . Sd sa spe . x cement Gt, Slane, tio . — ON a RS oy = eat. Sn a — = Jstedeh Regan, i, (2000)... — | Dats ty aS 8 ne 3001.