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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 dellvery 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 dellvery 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 pizzerla's cost formulas appear below. Fixed Cost per Month Cost per Pizza $ 4.40 Cost per Delivery $5,910 $ 610 Pizza ingredients Kitchen staff Ueilities Delivery person Delivery vehicle Equipment depreciation $ 0.30 $3.10 $1.50 $ 630 $ 400 $ 1,870 $ 730 Miscellaneous $ 0.15 In November, the pizzeria budgeted for 1.560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below. Actual Results 1.660 Pissas Deliveries 200 $ 25,450 $ 7.210 5.950 Bevenue Pizza ingredients Kitchen staff Ii1ii Delivery person Delivery vehicle Equipment depreciation $ 885 620 400 $ 1.870 Miscellaneous $ 790 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 Actual Results 1,680 For the Month Ended November 30 Flexible Budget Planning Budget Pizzas Deliveries 200 $ 25,450 Revenue Expenses: Pizza ingredients Kitchen staff Utilities 7.210 5,850 885 620 988 Delivery person Delivery vehicle Equipment depreciation 400 Rent 1,870 790 Miscellaneous Total expense Net operating income 18.611/ 6,839 $
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