CoursHeroTranscribedText: PROBLEM 11-22 More than One Cost Driver [L04, L05] 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. Data concerning the pizzeria's costs appear below: Fixed Cost Cost per Cost per per Month Pizza Delivery Pizza ingredients. $3.80 Kitchen staff . . $5,220 Utilities . . . . . . . . $630 $0.05 Delivery person. . . . . . . . . $3.50 Delivery vehicle. . . . . . $540 $1.50 Equipment depreciation . . . $275 Rent . . . . . $1,830 Miscellaneous . ... . .. . . . $820 $0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's operations in November appear below: Actual Results Pizzas . 1,240 Deliveries . . 174 Revenue . . . . . $17.420 Pizza ingredients $4,985 Kitchen staff . . . $5,281 Utilities . . . $984 Delivery person $609 Delivery vehicle . . . . . . . . . $655 Equipment depreciation . .. . . $275 Rent . . ... . . . . . . . . . . .... $1,830 Miscellaneous $954 Required: 1. Prepare a flexible budget performance report that shows both activity variances and revenue and spending variances for the pizzeria for November. 2. Explain the activity variances