Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1.Please explain how you work each problem to get the answer. Thank you. 2. Accounting Milano Pizza is a small neighborhood pizzeria that has a
1.Please explain how you work each problem to get the answer. Thank you.
2. Accounting
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 driversthe number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Cost per Pizza $ 4.70 Cost per Delivery $6,190 $ 750 $ 0.70 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $3.50 $1.70 $ 770 $ 512 $ 2,150 $ 870 $ 0.10 In November, the pizzeria budgeted for 1,980 pizzas at an average selling price of $13 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 2,080 180 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 27,730 $ 9,730 $ 6,130 955 630 1,014 512 2,150 874 Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Revenue and Spending Flexible Variances Budget Actual Results 2,080 Activity Variances Planning Budget Pizzas Deliveries 180 Revenue $ 27.730 Expenses Pizza ingredients Kitchen staff 9.730 6,130 Utilities 955 630 1,014 Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 512 2,150 Total expense 874 21,995 5,735 0 0 Net operating income $ $ 0 $ 0Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started