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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 $ 4.10
Kitchen staff $ 6,290
Utilities $ 800 $ 0.20
Delivery person $ 3.00
Delivery vehicle $ 820 $ 2.20
Equipment depreciation $ 552
Rent $ 2,250
Miscellaneous $ 920 $ 0.10

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 pizzerias actual results in November appear below:

Actual Results
Pizzas 2,230
Deliveries 230
Revenue $ 40,880
Pizza ingredients $ 10,630
Kitchen staff $ 6,230
Utilities $ 980
Delivery person $ 690
Delivery vehicle $ 1,024
Equipment depreciation $ 552
Rent $ 2,250
Miscellaneous $ 904

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.)

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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.) Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Revenue and Spending Results Variances 2,230 Flexible Budget Pizzas Deliveries 230 Revenue $ 40,880 Expenses: Pizza ingredients 10,630 Kitchen staff 6,230 Utilities 980 690 1,024 Delivery person Delivery vehicle Equipment depreciation Rent 552 2,250 Miscellaneous 904 Total expense 23,260 Net operating income $ 17,620

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