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		$ 4.90
Kitchen staff	$ 6,230
Utilities	$ 770	$ 0.90
Delivery person			$ 2.70
Delivery vehicle	$ 790		$ 1.90
Equipment depreciation	$ 528
Rent	$ 2,190
Miscellaneous	$ 890	$ 0.20

In November, the pizzeria budgeted for 2,040 pizzas at an average selling price of $15 per pizza and for 220 deliveries.

Data concerning the pizzerias actual results in November appear below:

	Actual Results
Pizzas	2,140
Deliveries	200
Revenue	$ 32,810
Pizza ingredients	$ 10,090
Kitchen staff	$ 6,170
Utilities	$ 965
Delivery person	$ 540
Delivery vehicle	$ 1,018
Equipment depreciation	$ 528
Rent	$ 2,190
Miscellaneous	$ 886

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.)

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.) Pizzas Deliveries Revenue Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget 2,140 200 $ 32,810 Expenses: Pizza ingredients 10,090 Kitchen staff 6,170 Utilities 965 Delivery person 540 Delivery vehicle 1,018 Equipment depreciation 528 Rent 2,190 Miscellaneous 886 Total expense 22,387 Net operating income $ 10,423