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. Data concerning the pizzerias costs appear below:

	Fixed Cost per Month		Cost per Pizza		Cost per Delivery
Pizza ingredients			$	4.30
Kitchen staff	$	6,330
Utilities	$	820	$	0.40
Delivery person					$	3.20
Delivery vehicle	$	840			$	1.30
Equipment depreciation	$	568
Rent	$	2,290
Miscellaneous	$	940	$	0.20

In November, the pizzeria budgeted for 2,190 pizzas at an average selling price of $20 per pizza and for 190 deliveries.

Data concerning the pizzerias operations in November appear below:

	Actual Results
Pizzas		2,290
Deliveries		170
Revenue	$	46,560
Pizza ingredients	$	10,990
Kitchen staff	$	6,270
Utilities	$	990
Delivery person	$	544
Delivery vehicle	$	1,028
Equipment depreciation	$	568
Rent	$	2,290
Miscellaneous	$	916

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.)

For the month ended November 30
	Actual Results	Revenue and spending variances		Flexible budget
Revenue	$46,560
Expenses:
Pizza ingredients	10,990
Kitchen staff	6,270
Utilities	990
Delivery person	554
Delivery vehicle	1,028
Equipment depreciation	568
Rent	2,290
Miscellaneous	916
Total expenses	23,596
Net operating income	22,964