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$$s owner has determined that the shop has two major cost drivers $$ the number of pizzas sold, and the number of deliveries made.

The Pizzeria$$s cost formulas appear below:

Fixed cost$-$ month Cost per Pizza Cost Deliv

Pizza Ingredients $$4\mathrm{.}30$

Kitchen Staff $$6,110\mathrm{.}00$

Utilities $$710\mathrm{.}00$ $$0\mathrm{.}30$

Delivery Person $$3\mathrm{.}00$

Delivery Car $$730\mathrm{.}00$ $$1\mathrm{.}30$

Equip Depreciation $$480\mathrm{.}00$

Rent $$2,070\mathrm{.}00$

Miscellaneous $$830$ $$0\mathrm{.}15$

In November, the pizzeria budgeted for $$1,860$ pizzas at an average selling price of $$17$ per pizza and for $240$ deliveries.

Data concerning the pizzeria$$s actual results in November were as follows:

Actual Results

Pizzas $1,960$

Deliveries $220$

Revenue $$33,970$

Pizza Ingredients $$9,010$

Kitchen Staff $$6,050$

Utilities $$935$

Delivery Person $$682$

Delivery Car $$1,006$

Equip Depreciation $$480$

Rent $$2,070$

Miscellaneous $$850$

Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November.

Actual results Flexible Budget Planning Budget

pizza $1,960$

deliv $220$

revenue $$33,970$

Expenses:

Pizza Ingre $$9,010$

Kitchen staf $$6,050$

Utili $$935$

Deliv Person $$682$

Deliv Car $$1,0006$

Equip Dep $$480$

Rent $$2,070$

Misc $$850$

Total Expe $$21,083$

Net Op In $$12,887$