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 Pizza	Cost per Delivery
Pizza ingredients		$ 4.50
Kitchen staff	$ 5,930
Utilities	$ 620	$ 0.40
Delivery person			$ 3.20
Delivery vehicle	$ 640		$ 1.60
Equipment depreciation	$ 408
Rent	$ 1,890
Miscellaneous	$ 740	$ 0.20

In November, the pizzeria budgeted for 1,590 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:

	Actual Results
Pizzas	1,690
Deliveries	210
Revenue	$ 27,600
Pizza ingredients	$ 7,390
Kitchen staff	$ 5,870
Utilities	$ 890
Delivery person	$ 672
Delivery vehicle	$ 988
Equipment depreciation	$ 408
Rent	$ 1,890
Miscellaneous	$ 796

Required:

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.)

Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Flexible Planning Results Budget Budget Pizzas 1,690 Deliveries 210 Revenue 27,600 Expenses: Pizza ingredients 7,390 Kitchen staff 5,870 Utilities 890 Delivery person 672 Delivery vehicle 988 Equipment depreciation 408 Rent 1,890 Miscellaneous 796 Total expense 18,904 0 0 Net operating income $ 8,696 0 0