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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 per Month Pizza ingredients Cost per Pizza $ 4.00 Cost per Delivery Kitchen staff $ 6,050 Utilities $ 680 $ 1.00 Delivery person Delivery vehicle $ 700 $ 2.80 $ 2.20 Equipment depreciation $ 456 $ 2,010 Miscellaneous $ 800 $ 0.20 Rent In November, the pizzeria budgeted for 1,770 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas Deliveries Revenue Pizza ingredients Kitchen staff 1,870 190 $ 26,800 $ 8,470 $ 5,990 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 920 $ 532 $ 1,000 $ 456 $ 2,010 $ 832 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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