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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

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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 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 Fixed Cost Cost per per Month Pizza Cost per Delivery $ 4.30 $ 5,890 $ 600 $ 0.20 $ 3.00 $ 1.40 Delivery vehicle Equipment depreciation Rent Miscellaneous $ 620 $ 392 $1,850 $ 720 $ 0.10 In November, the pizzeria budgeted for 1,530 pizzas at an average selling price of $14 per pizza and for 210 deliveries Data concerning the pizzeria's actual results in November appear below: Pizzas Deliveries Revenue Pizza Ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: Actual Results 1,630 190 $ 23,360 5.7,030 $ 5,830 $ 880 $ 570 $ 984 $ 392 $ 1,850 $704 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 (ie., zero variance). Input all amounts as positive values.) Rent Miscellaneous Required: $1,850 $ 784 1. Compute the revenue and spending variances for the pizzeria for November (Ind selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zer values.) Pizzas Deliveries Revenue Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget 1,630 190 $ 23,360 Expenses Pizza ingredients 7,030 Kitchen staff 5.830 Utilities 880 Delivery person 570 Delivery vehicle 984 Equipment depreciation 392 Rent 1.850 Miscellaneous 784 Total expense 18.320 Net operating income 6.040

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