Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can someone help me with this managerial accounting practice problem Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining

can someone help me with this managerial accounting practice problem
image text in transcribed
image text in transcribed
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take out and tree home dellvery 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 Cost per Pizza $ 4.30 Cost per Delivery $5,890 $ 600 $ 0.20 Pizza ingredients Kitchen Staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $3.00 $1.40 $ 620 $392 $1,850 $ 720 $ 0.10 In November, the pizzeria budgeted for 1530 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November appear below: Pias Deliveries Actual Results 1,630 190 S Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 23,360 $ 7,030 5,830 $ 880 $ 570 $ 984 392 1,850 784 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 Flexible Budget Actual Results 1,630 Planning Budget Pizzas Deliveries 190 $ 23,360 Revenue Expenses Pizza ingredients Kitchen statt 7.030 5,830 Utilities 880 570 984 Delivery person Delivery vehicle Equipment depreciation Rent 392 1,850 784 Miscellaneous Total expense Net operating income 18,320 5,040 $

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

Public Sector Accounting And Finance

Authors: Prof Stephen Sunday Sharang Ph.D.

1st Edition

979-8639273353

More Books

Students also viewed these Accounting questions

Question

3-9. What is a trading bloc?

Answered: 1 week ago

Question

8. Explain the contact hypothesis.

Answered: 1 week ago

Question

2. Define the grand narrative.

Answered: 1 week ago