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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 pizzerias owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made.

The pizzerias cost formulas appear below:

Fixed Cost per Month Cost per Pizza Cost per Delivery
Pizza ingredients $ 4.20
Kitchen staff $ 6,090
Utilities $ 700 $ 0.20
Delivery person $ 3.00
Delivery vehicle $ 720 $ 1.20
Equipment depreciation $ 472
Rent $ 2,050
Miscellaneous $ 820 $ 0.10

In November, the pizzeria budgeted for 1,830 pizzas at an average selling price of $16 per pizza and for 230 deliveries.

Data concerning the pizzerias actual results in November appear below:

Actual Results
Pizzas 1,930
Deliveries 210
Revenue $ 31,520
Pizza ingredients $ 8,830
Kitchen staff $ 6,030
Utilities $ 930
Delivery person $ 630
Delivery vehicle $ 1,004
Equipment depreciation $ 472
Rent $ 2,050
Miscellaneous $ 844

Required:

1. Compute the revenue and spending 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.)

ompute the revenue and spending 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.) image text in transcribed

Revenue and Spending Variances Flexible Budget Pizzas Actual Results 1.930 210 Deliveries Revenue $ 31,520 Expenses: Pizza ingredients Kitchen staff 8,830 6,030 Utilities 930 Delivery person Delivery vehicle Equipment depreciation 630 1,004 472 Rent Miscellaneous Total expense 2,050 844 20,790 | Net operating income $ 10,730 Prey 2 of 6 H N

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