Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alibaba 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.

Alibaba 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 pizzerias owner has determined that the shop has two major cost driversthe number of pizzas sold, and the number of deliveries made.

The pizzerias cost formulas appear below:

Fixed Cost per Month

Cost per Pizza

Cost per Delivery

Pizza ingredients

$

4.10

Kitchen staff

$

6,070

Utilities

$

690

$

0.10

Delivery person

$

2.90

Delivery vehicle

$

710

$

2.30

Equipment depreciation

$

464

Rent

$

2,030

Miscellaneous

$

810

$

0.05

In November, the pizzeria budgeted for 1,800 pizzas at an average selling price of $15 per pizza and for 220 deliveries.

Data concerning the pizzerias actual results in November appear below:

Actual Results

Pizzas

1,900

Deliveries

200

Revenue

$

29,130

Pizza ingredients

$

8,650

Kitchen staff

$

6,010

Utilities

$

925

Delivery person

$

580

Delivery vehicle

$

1,002

Equipment depreciation

$

464

Rent

$

2,030

Miscellaneous

$

838

Required:

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Alpine Cupcakes Audit Case With Data Analytics

Authors: Carol Callaway Dee, Mary P.Mindak

2nd Edition

1618533231, 978-1618533234

More Books

Students also viewed these Accounting questions