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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.

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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 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 $ 4.00 $6,270 $ 790 $ 0.10 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $2.90 $2.10 $ 810 $ 544 $2,230 $ 910 $ 0.05 In November, the pizzeria budgeted for 2,100 pizzas at an average selling price of $17 per pizza and for 240 deliveries. In November, the pizzeria budgeted for 2,100 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzerias actual results in November appear below: Actual Results 2,200 220 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 38,130 $ 10,450 $ 6,210 $ 975 $ 638 $ 1,022 $ 544 $ 2,230 $ 898 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (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.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Budget Planning Budget Pizzas Actual Results 2,200 220 Deliveries Revenue $ 38,130 Expenses: Pizza ingredients Kitchen staff D I N 1 10,450 6,210 975 Utilities Delivery person 638 Delivery vehicle Equipment depreciation Rent Miscellaneous Total expense Net operating income 1,022 544 2,230 898 22,967 15,163 $

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