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1: Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take- out and free home

1: Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take- out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria's costs appear below: In November, the pizzeria budgeted for 1,300 pizzas at an average selling price of $13.50 per pizza and for 200 deliveries. Data concerning the pizzeria's operations in November appear below: Required: 1. Prepare a flexible budget performance report that shows both activity variances and revenue and spending variances for the pizzeria for November. marks) 2. Explain the activity variances. (20 marks) (20

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