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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
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 per Month Cost per Pizza cost per Delivery $ 4.50 $ 6,370 $ 840 $0.60 $3.40 $ 1.50 Delivery vehicle Equipment depreciation Rent Miscellaneous $ 860 $ 584 $ 2,330 $ 960 $ 0.10 In November, the pizzeria budgeted for 2,250 pizzas at an average selling price of $22 per pizza and for 210 deliveries. S Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas Deliveries Revenue 2,350 190 $ 52,480 Pizza ingredients $ 11,350 Kitchen staff $ 6,310 Utilities $ 1,000 Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 646 $1,032 $ 584 $ 2,330 $ 928 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Milano Pizza Required: 1. Complete the flexible budget performance report that shows both revenue and spending varlances and activity variances for the pizzeria for November. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Pizzas Deliveries Actual Results 2,350 190 S 52,480 Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Revenue Expenses Pizza ingredients 11.350 Kitchen staff 6.310 Utilities 1,000 Delivery person 646 Delivery vehicle 1,032 Equipment depreciation 584 Rent 2,330 Miscellaneous 928 Total expense 24,180 Net operating income $ 28,300 Flexible Planning Budget Budget
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