Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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. Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Fixed Cost per Month Cost per Pizza $ 4.10 Cost per Delivery $ 6,070 $ 690 $ 0.10 $ 710 $ 2.90 $ 2.30 $ 464 $ 2,030 $810 $ 0.05 In November, the pizzeria budgeted for 1,800 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas 1.900 Equipment depreciation. Rent. Miscellaneous $ 464 $ 2,030 $ 810 $ 0.05 In November, the pizzeria budgeted for 1,800 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: 1,900 200 $ 29,130 $ 8,650 $ 6,010 $925 $580 $ 1,002 $ 464 $2,030 $838 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 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.) Pizzas Deliveries Revenue Expenses Pizza ingredients Kitchen staff Utilities Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Results 1,900 200 $ 29,130 8,650 6,010 925 Flexible Budget Planning Budget Deliveries Revenue: Expenses: Pizza ingredients Kitchen staff Utilities $ 10 200 29,130 8,650 6,010 925 Delivery person 580 Delivery vehicle 1,002 Equipment depreciation 464 Rent 2,030 Miscellaneous 838 Total expense 20,499 Net operating income $ 8,631

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fraud examination

Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma

4th edition

538470844, 978-0538470841

More Books

Students also viewed these Accounting questions