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 $ 4.00 Kitchen staff $ 6,270 Utilities $ 790 $ 0.10 Delivery person $ 2.90 Delivery vehicle $ 810 $ 2.10 Equipment depreciation $ 544 Rent $ 2,230 Miscellaneous $ 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. Data concerning the pizzerias actual results in November appear below: Actual Results Pizzas 2,200 Deliveries 220 Revenue $ 38,130 Pizza ingredients $ 10,450 Kitchen staff $ 6,210 Utilities $ 975 Delivery person $ 638 Delivery vehicle $ 1,022 Equipment depreciation $ 544 Rent $ 2,230 Miscellaneous $ 898 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
	Actual Results			Flexible Budget			Planning Budget
Pizzas	2,200			2,200			2,100
Deliveries	220			220			240
Revenue	$38,130	$730	F	$37,400	$1,700	F	$35,700
Expenses:
Pizza ingredients	10,450	1,650	F	8,800	400	U	8,400
Kitchen staff	6,210
Utilities	975
Delivery person	638
Delivery vehicle	1,022
Equipment depreciation	544
Rent	2,230
Miscellaneous	898
Total expense	22,967
Net operating income	$15,163