Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribedimage text in transcribed

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 per month Cost per Pizza Cost per Delivery $ 5.00 $6,030 $ 670 $ 0.90 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $2.70 $2.10 $ 690 $ 448 $1,990 $ 790 $ 0.15 In November, the pizzeria budgeted for 1,740 pizzas at an average selling price of $13 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,840 180 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 24,530 $ 8,290 $ 5,970 $ 915 486 $ 998 $ 448 $ 826 1,990 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 (.e., zero variance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Budget Planning Budget Pizzas Actual Results 1,840 180 Deliveries Revenue $ 24,530 Expenses: Pizza ingredients 8,290 Kitchen staff 5,970 Utilities 915 486 998 Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 448 1,990 826 Total expense 19,923 Net operating income $ 4,607

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A History Of Accountancy In The United States

Authors: Gary John Previts, Barbara Dubis Merino

98th Edition

0814207286, 978-0814207284

More Books

Students also viewed these Accounting questions

Question

=+Is it a site that explores new technology?

Answered: 1 week ago

Question

=+Where can you initiate a dialogue (when appropriate)?

Answered: 1 week ago

Question

=+ Does this site have scientific, medical, or legal advice?

Answered: 1 week ago