5.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: per Month Fixed Cost Cost per Cost per Pizza Delivery Pizza ingredients $ 4.70 Kitchen staff $ 5,970 Utilities $ 640 $ 0.60 Delivery person $ 3.40 Delivery vehicle $ 660 $ 1.80 Equipment depreciation $ 424 Rent $ 1,930 Miscellaneous $ 760 $ 0.06 In November, the pizzeria budgeted for 1,650 pizzas at an average selling price of $18 per pizza and for 250 del ies. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Actual Results 1,750 230 Revenue $ Pizza ingredients $ Kitchen staff $ Utilities $ Delivery person $ Delivery vehicle $ Equipment depreciation $ Rent $ Miscellaneous $ 32,080 7,750 5.910 900 782 992 424 1,930 808 Required: 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.) 1. What amount of revenue would be included in Adger's flexible budget for May? 2. What amount of employee salaries and wages would be included in Adger's flexible budget for May? 3. What amount of travel expenses would be included in Adger's flexible budget for May? 4. What amount of other expenses would be included in Adger's flexible budget for May? 5. What net operating income would appear in Adger's flexible budget for May? 6. What is Adger's revenue variance for May? (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.) 7. What is Adger's employee salaries and wages spending variance for May? (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.) 8. What is Adger's travel expenses spending variance for May? (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.) 9. What is Adger's other expenses spending variance for May? (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.) 10. What amount of revenue would be included in Adger's planning budget for May? 11. What amount of employee salaries and wages would be included in Adger's planning budget for May? 12. What amount of travel expenses would be included in Adger's planning budget for May? 13. What amount of other expenses would be included in Adgers planning budget for May? 14. What activity variance would Adger report in May with respect to its revenue? (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.) 15. What activity variances would Adger report with respect to each of its expenses for May? (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.)
