Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Milano Pizza has a small area for in - store dining as well as offers take - out and free home delivery services. The pizzeria
Milano Pizza has a small area for instore dining as well as offers takeout and free home delivery services. The pizzerias owner determined 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 $
Kitchen staff $
Utilities $ $
Delivery person $
Delivery vehicle $ $
Equipment depreciation $
Rent $
Miscellaneous $ $
In November, the pizzeria budgeted for pizzas at an average selling price of $ per pizza and for deliveries.
Data concerning the pizzerias actual results in November were as follows:
Actual Results
Pizzas
Deliveries
Revenue $
Pizza ingredients $
Kitchen staff $
Utilities $
Delivery person $
Delivery vehicle $
Equipment depreciation $
Rent $
Miscellaneous $
Required:
Complete the flexible budget performance report for November.
Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values
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