Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as...
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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: Fixed Cost per Month Cost per Cost per Pizza ingredients Pizza $ 4.90 Delivery Kitchen staff $ 6,010 Utilities $ 660 $ 0.80 Delivery person Delivery vehicle $ 680 $ 2.60 $ 2.00 Equipment depreciation Rent $ 440 $ 1,970 Miscellaneous $ 780 $ 0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Kitchen staff Actual Results 1,810 170 $ 36,800 Pizza ingredients $ 8,110 $ 5,950 Utilities Delivery person $ 910 $ 442 $ 996 $ 440 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 1,970 $ 820 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 variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. 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 Cost per Cost per Pizza ingredients Pizza $ 4.90 Delivery Kitchen staff $ 6,010 Utilities $ 660 $ 0.80 Delivery person Delivery vehicle $ 680 $ 2.60 $ 2.00 Equipment depreciation Rent $ 440 $ 1,970 Miscellaneous $ 780 $ 0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Kitchen staff Actual Results 1,810 170 $ 36,800 Pizza ingredients $ 8,110 $ 5,950 Utilities Delivery person $ 910 $ 442 $ 996 $ 440 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 1,970 $ 820 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 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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