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Milano Pizza is a small neighborhood pizzeria that has a small area for instore dining as well as offering takeout and free home delivery services.
Milano Pizza is a small neighborhood pizzeria that has a small area for instore dining as well as offering takeout and free home delivery services. The pizzeria's owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed East Cost per Cost per per Month Pizza Delivery Pizza ingredients 5 4.18 Kitchen staff $6,293 Utilities $ 333 35 5.28 Delivery person $3.88 Delivery vehicle $ 323 $2.28 Equipment depreciation $ 552 Rent $2,250 Miscellaneous $ 928 5 8.18 In November, the pizzeria budgeted for 2,130 pizzas at an average selling price of $18 per pizza and for 250 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas 2, 238 Deliveries 238 Revenue $ 46, 888 Pizza ingredients $ 10,538 Kitchen staff $ 5,238 Utilities 5 9'88 Delivery person 35 598 Delivery vehicle $ 1,824 Equipment depreciation $ 552 Rent 5 2, 253 Miscellaneous 35 964 l 1. Complete the exible 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 "l'lone'I for no effect [i.e., zero variance]. Input all amounts as positive values.) Deliveries Revenue Expenses: Pizza ingredients Kitchen sta Utilities Delivery person Deliver}:l vehicle Equipment depreciation Rent Miscellaneous Total expense Net operating income
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