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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.
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 driversthe 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 Delivery Pizza ingredients :5 4.30 Kitchen staff 15 6,1 10 Utilities $ 7 10 $ 0.3 0 Delivery person 3: 3.10 Delivery vehicle 15 730 $ 1.30 Equipment depreciation $ 480 Rent $ 2,070 Miscellaneous 15 830 $ 0.15 CI In November, the pizzeria budgeted for 1,860 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results Pizzas 1,960 Deliveries 220 Revenue $ 33,970 Pizza ingredients $ 9,010 Kitchen staff $ 6,050 Utilities 35 93 5 Delivery person $ 682 Delivery vehicle $ 1,006 Equipment depreciation $ 480 Rent $ 2,070 Miscellaneous $ 850 required: 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 "None" for no effect (i.e., zero variance]. Input all amounts as positive values.)
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