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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.

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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. 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 Cost per Month Cost per Pizza $ 4.70 Cost per Delivery $6,190 $ 750 $ 0.70 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $3.50 $1.70 $ 770 $ 512 $ 2,150 $ 870 $ 0.10 In November, the pizzeria budgeted for 1,980 pizzas at an average selling price of $13 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Actual Results 2,080 180 Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation $ 27,730 $ 9,730 $ 6,130 $ 955 $ 630 $ 1,014 $ 512 $ 2,150 $ 874 Rent Miscellaneous 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 2,080 Planning Budget Pizzas Deliveries 180 Revenue $ 27,730 Expenses: Pizza ingredients Kitchen staff 9,730 6,130 Utilities 955 Delivery person 630 1,014 Delivery vehicle Equipment depreciation Rent 512 2,150 Miscellaneous 874 Total expense 21,995 0 0

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