Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Check my work Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and
Check my work 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: Pizza ingredients ook Kitchen staff Utilities int Delivery person ences Delivery vehicle Equipment depreciation Rent Miscellaneous Fixed Cost per Month Cost per Pizza $ 4.30 Cost per Delivery $ 5,890 $ 600 $ 0.20 $ 620 $ 3.00 $ 1.40 $ 392 $ 1,850 $ 720 $ 0.10 In November, the pizzeria budgeted for 1,530 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Actual Results 1,630 190 ces In November, the pizzeria budgeted for 1,530 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 1,630 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle. Equipment depreciation Rent Miscellaneous Required: 190 $ 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 Note: 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. 2 Pizzas Deliveries Revenue Flexible Budget Performance Report For the Month Ended November 30 Actual Results 1,630 190 $ 23,360 Book Expenses Pizza ingredients Print 7,030 Kitchen staff 5,830 erences Utilities 880 Delivery person 570 Delivery vehicle 984 Equipment depreciation 392 Rent 1,850 Miscellaneous 784 Total expense 18,320 Net operating income $ 5.040 Flexible Budget Planning Budget Check my wom
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started