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Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's owner determined the
Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's owner determined 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 Pizza ingredients Kitchen staff Cost per Pizza $ 4.60 Cost per Delivery $ 6,170 Utilities Delivery person $ 740 $ 0.60 Delivery vehicle $ 760 $ 3.40 $ 1.60 Equipment depreciation Rent $ 504 $ 2,130 Miscellaneous $ 860 $ 0.20 In November, the pizzeria budgeted for 1,950 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Actual Results 2,050 170 $ 41,680 Pizza ingredients Kitchen staff $ 9,550 $ 6,110 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 950 $ 578 $ 1,012 $ 504 $ 2,130 $ 868 1. 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 (i.e., zero variance). Input all amounts as positive values.
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