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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 drivers-the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Cost per Cost per Pizza Delivery $ 4.70 $6,190 $ 750 $ 0.70 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $3.50 $1.70 $ 770 $ 512 $2,150 $ 870 $ 0.10 In November, the pizzeria budgeted for 1,980 pizzas at an average selling price of $13 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November appear below: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Actual Results 2,080 180 $ 27,730 $ 9,730 $ 6,130 955 630 1,014 512 $ 2,150 874 Required: 1. Compute the revenue and spending 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 Revenue and Spending Variances For the Month Ended November 30 Actual Revenue and Spending Results Variances 2,080 Flexible Budget Pizzas Deliveries 180 Revenue $ 27,730 Expenses: Pizza ingredients Kitchen staff 9,730 6,130 Utilities 955 630 Delivery person Delivery vehicle Equipment depreciation 1,014 512 Rent 2,150 874 Miscellaneous Total expense Net operating income 21,995 5,735 $

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