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.

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: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Fixed Cost Cost per Cost per per month Pizza Delivery $ 3.80 $ 5,220 $ 630 $ 0.05 $ 3.50 $ 540 $ 1.50 $ 275 $ 1,830 $ 820 $ 0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Actual Results 1,240 174 Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 17,420 $ 4,985 $ 5,281 $ 984 609 655 $ 275 1,830 $ 954 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 1,240 Planning Budget Pizzas Deliveries 174 Revenue $ 17,420 Expenses: Pizza ingredients Kitchen staff 4,985 5,281 Utilities 984 609 655 Delivery person Delivery vehicle Equipment depreciation Rent 275 1,830 Miscellaneous 954 Total expense 15,573 Net operating income $ 1,847