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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.
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 pizzeria's cost formulas appear below: Fixed per Month Cost per cost per Pizza Delivery $ 4.90 $6,010 $ 660 $ 0.80 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $2.60 $2.00 $ $ 680 440 $1,970 $ 780 $0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,810 Pizzas Deliveries 170 Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous AA GA GA GA GA GA $ 36,800 $ 8,110 5,950 910 442 996 440 $ 1,970 $ 820 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 Planning Budget Pizzas Deliveries Actual Results 1,810 170 Revenue $ 36,800 Expenses: Pizza ingredients Kitchen staff 8,110 5,950 Utilities Delivery person Delivery vehicle Equipment depreciation 910 442 996 440 1,970 820 19,638 17,162 Rent Miscellaneous Total expense Net operating income $
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