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				$	4.80
Kitchen staff	$	5,990
Utilities	$	650		$	0.70
Delivery person							$	3.50
Delivery vehicle	$	670					$	1.90
Equipment depreciation	$	432
Rent	$	1,950
Miscellaneous	$	770		$	0.10

In November, the pizzeria budgeted for 1,680 pizzas at an average selling price of $19 per pizza and for 180 deliveries.

Data concerning the pizzerias actual results in November appear below:

	Actual Results
Pizzas		1,780
Deliveries		160
Revenue	$	34,410
Pizza ingredients	$	7,930
Kitchen staff	$	5,930
Utilities	$	905
Delivery person	$	560
Delivery vehicle	$	994
Equipment depreciation	$	432
Rent	$	1,950
Miscellaneous	$	814

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 1,780 Deliveries 160 Revenue $ 34,410 Expenses: Pizza ingredients 7,930 Kitchen staff 5,930 Utilities 905 Delivery person 560 994 Delivery vehicle Equipment depreciation 432 Rent 1,950 Miscellaneous 814 Total expense 19,515 Net operating income $ 14,895