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# Quiz 2 - Pete's Pizza Place has four pizza makers and ten...

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Pete's Pizza Place has four pizza makers and ten other employees who take orders from customers and perform other tasks. The four pizza makers and the other employees are paid an hourly wage. How would one classify (1) the wages paid to the pizza makers and other employees and (2) materials (e.g., cheeses, sauce, etc.) used to make the pizza? Assume the activity is the number of pizzas made. Materials to make Employee Wages the pizzas a. Fixed cost Fixed cost b. Fixed cost Variable cost c. Variable cost Fixed cost d. Mixed cost Variable cost e. Mixed cost Mixed cost Answer Selected Answer: Option B Correct Answer: Option D Response Feedback: Employees = minimum staffing need would imply fixed, the more pizzas sold, the more employees, therefore it is both fixed & variable, or mixed; materials = variable Question 2 2 out of 2 points The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: Cost Item Direct material Direct labor

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Quiz 2 - Pete's Pizza Place has four pizza makers and ten...

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