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 pizzerias 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
Pizza ingredients				$	4.50
Kitchen staff	$	6,370
Utilities	$	840		$	0.60
Delivery person							$	3.40
Delivery vehicle	$	860					$	1.50
Equipment depreciation	$	584
Rent	$	2,330
Miscellaneous	$	960		$	0.10

In November, the pizzeria budgeted for 2,250 pizzas at an average selling price of $22 per pizza and for 210 deliveries.

Data concerning the pizzerias actual results in November were as follows:

	Actual Results
Pizzas		2,350
Deliveries		190
Revenue	$	52,480
Pizza ingredients	$	11,350
Kitchen staff	$	6,310
Utilities	$	1,000
Delivery person	$	646
Delivery vehicle	$	1,032
Equipment depreciation	$	584
Rent	$	2,330
Miscellaneous	$	928

Required:

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 Actual Results 2,350 Planning Budget Pizzas Deliveries 190 Revenue $ 52,480 Expenses: Pizza ingredients 11,350 Kitchen staff 6,310 Utilities 1,000 Delivery person 646 1,032 Delivery vehicle Equipment depreciation Rent 584 2,330 Miscellaneous 928 Total expense 24,180 28,300 Net operating income $