CHECK FIGURES: Revenue and Spending Variance for Net Operating

Income is $$2631\mathrm{.}50$ Favorable. Activity Variance for Net Operating Income is

$$2,281\mathrm{.}50$ Unfavorable

Lorenzo's Pizza is a neighborhood pizzeria with in$-$store dining, take$-$out, and delivery services.

The restaurant has two cost drivers $-$ number of pizzas sold and number of deliveries. The

restaurant's cost formulas appear below:

In July, the restaurant budgeted for $2,260$ pizzas at an average selling price of $$19\mathrm{.}00$ per pizza,

and $160$ deliveries. Data concerning the restaurant's actual results for July $2023$ were as follows:

Actual Results

Pizzas Sold $2,110$

Deliveries Made $190$

REQUIRED:

Prepare Flexible Budget Performance Report that show both revenue and spending

variances as well as activity variances $-$ variances between the planning budget and the

flexible budget. You must include unfavorable or favorable indicators $($U or F$)$ for each

line item and they must be created using a nested IF statement.