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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. Pizza ingredients Kitchen staff Utilities Fixed Cost per Month Cost per Pizza $ 4.10 Cost per Delivery $ 6,070 $ 690 $ 0.10 $ 2.90 Equipment depreciation $ 710 $ 464 $ 2,030 $ 2.30 $ 810 $ 0.05 Delivery person Delivery vehicle Rent Miscellaneous In November, the pizzeria budgeted for 1,800 pizzas at an average selling price of $15 per pizza and for 220 deliveries Data concerning the pizzeria's 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: 1,900 200 $ 29,130 $ 8,650 $ 6,010 $925 $ 580 $ 1,002 $ 464 $ 2,030 $ 838 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. utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 3925 $ 580 $ 1,002 $ 464 $ 2,030 $838 Required: 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. Pizzas Deliveries Revenue Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Planning Actual Results Budget Budget 1,900 200 $ 29,130 Expenses 26 Pizza ingredients Kitchen staff 8,650 6,010 Utilities 925 Delivery person 580 Delivery vehicle: 1,002 Equipment depreciation 464 Rent 2,030 Miscellaneous 838 Total expenses 20,499 Net operating income $ 8,631
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