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4 10 points eBook Hint Print References Problem 9-19 (Static) More than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6] Milano Pizza is a small neighborhood
4 10 points eBook Hint Print References Problem 9-19 (Static) More than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6] 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. The pizzeria's cost formulas appear below: Fixed Cost per Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 5,220 $ 630 $ 540 $ 275 $ 1,830 $ 820 Cost per Pizza $ 3.80 Actual $ 0.05 $ 0.15 Cost per Delivery $ 3.50 $ 1.50 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Chec
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In November, the pizzeria budgeted for 1,200 pizras at an averoge selling price of $1350 per pizza and for 180 deliveries. Data concerning the pizzeria's actuat results in November were as follows: Required: 1. Complete the flexible budget performance teport 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 (fee, dero variance). Input all amounts as positive values.) Problem 9-19 (Static) More than One Cost Drlver [LO9-2, LO9-3, LO9-5, LO9-6] Muano Pizza is a small neighborhood pizetia that has a smal area for in-store dining as well as offering take-out and free home defivery services, The pizzenia's owner has determined that the shop has fwo major cost drivers-the number of pizzas sold and the number of detiveries made. The pierenets cost formulins oppear below. In November, the pizzeria budpeted for 1,200 pizzis at an werage selling price or 51350 per pizta and tor 180 deliveries Data conceining the pizzerias actuat results in November were ias follows- \begin{tabular}{|c|c|c|c|} \hline & Rosults & Budget & Budgei \\ \hline Pizzas & 1,240 & 1,240 & \\ \hline Deliveries & 174 & 174 & 194 \\ \hline Revenue & 17,420 & & T \\ \hline \multicolumn{4}{|l|}{ Expenses: } \\ \hline Pizza ingredients & 4,985 & & P \\ \hline Kitchen staff & 5.281 & & \\ \hline Utilities & 984 & & \\ \hline Delivery person & 609 & & \\ \hline Delivery vehicle & 655 & & \\ \hline Equipment depreciation & 275 & & \\ \hline Rent & 1,830 & & \\ \hline Miscellaneous & 954 & & \\ \hline Tatal expense & 15,573 & 0 & 0 \\ \hline Net operating income & 1,847 & 0 & $ \\ \hline \end{tabular} 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 (l.e., zero variance). Input all amounts as positive values.) Step by Step Solution
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