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3 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
3 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 16 polnts Fixed Cost Cost per Cost per Delivery per 02:39:45 ve Month Pizza 4.40 Pizza ingredients Kitchen staff Utilities 5,910 $ 610 s 0.30 $3.10 $1.50 Delivery person Delivery vehicle Equipment depreciation Rent 630 $ 400 1,870 Miscellaneous $ 730 $0.15 In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries Data concernina the pizzeria's operations in November appear below: In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries Data concerning the pizzeria's operations in November appear below: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Actual Results 1,660 200 $25,450 $ 7,210 $ 5,850 $ 885 $620 $ 986 Equipment depreciation $400 $ 1,870 $ 790 Rent Miscellaneous Required 1. Compute the revenue and spending 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 Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget Revenue $ 25,450 Expenses Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 7,210 5,850 885 620 986 400 1,870 790 18.611 $6,839 Total expense Net operating income
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