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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: Fixed Cost Cost per Cost per per Month Pizza ingredients Pizza $ 4.20 Delivery Kitchen staff Utilities $ 6,090 $ 700 $ 0.20 Delivery person Delivery vehicle $ 720 $ 3.00 $ 1.20 Equipment depreciation Rent $ 472 $ 2,050 Miscellaneous $ 820 $ 0.10 In November, the pizzeria budgeted for 1,830 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Actual Results 1,930 210 $ 31,520 $ 8,830 $ 6,030 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 930 $ 630 $ 1,004 $ 472 $ 2,050 $ 844 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.)
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